The social media platform X, formerly known as Twitter, has reportedly regained the $44 billion valuation that Elon Musk originally paid for it, marking a significant financial rebound. This resurgence comes as Musk strengthens his ties with former U.S. President Donald Trump and positions X as a free speech-focused alternative to traditional platforms.
According to a report by the Financial Times, a recent secondary share sale valued X at $44 billion (£33.9 billion), as investors traded existing stakes in the company. This valuation is a dramatic shift from late 2023 when Fidelity Investments valued X at just $10 billion.
X Looks to Raise Capital and Pay Off Debt
Beyond the secondary share transaction, X is seeking to raise $2 billion in fresh capital through a primary funding round, offering new equity to investors. This new cash influx is expected to help pay off over $1 billion in junior debt, easing the company’s financial burdens.
Musk, who acquired Twitter in October 2022, famously declared “the bird is free” upon taking control. By mid-2023, he rebranded the platform as X, shifting its focus toward a more open and unmoderated social media experience.
Investor Confidence Returns Despite Ad Challenges
Following Musk’s acquisition, X relaxed content moderation policies, leading to advertiser pullbacks and brand boycotts. In response, Musk publicly criticized advertisers for attempting to “blackmail” him with ad suspensions. His frustrations boiled over in November 2023 during an appearance at the New York Times DealBook Summit, where he delivered an expletive-laden response to the ongoing ad revenue struggles.
X later filed lawsuits against major corporations—including Unilever, Mars, and CVS Health—as well as a global advertising alliance, alleging they unlawfully coordinated to withdraw from the platform and intentionally hurt its revenue.
“We tried peace for two years, now it is war,” Musk declared in a post following the lawsuit’s announcement.
Despite advertising setbacks, investor sentiment toward X appears to be improving, with Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital, and Fidelity Investments maintaining their stakes in the company. The $44 billion secondary valuation also helps set a pricing benchmark for the platform’s upcoming $2 billion capital raise.
Musk’s AI Venture Strengthens X’s Financial Standing
Financial institutions that initially provided loans for Musk’s X takeover have also seen an upswing in confidence. Last year, Musk allocated a 25% stake in his artificial intelligence startup, xAI, to these lenders, offering them additional security on their loans.
Since then, xAI has reached a valuation of $45 billion, providing new financial backing for Musk’s ventures and further supporting X’s renewed valuation.
While X’s revenues have declined since Musk’s acquisition, the platform generated an adjusted profit of $1.2 billionlast year, signaling some level of financial stability amid its transition.
Tesla No Longer Musk’s Most Valuable Asset
Meanwhile, Tesla’s market value has continued to decline, shifting the balance of Musk’s fortune. For the first time in five years, SpaceX has overtaken Tesla as Musk’s most valuable asset, according to Forbes.
Musk’s stake in SpaceX is now worth $147 billion, surpassing his Tesla holdings by approximately $20 billion. This shift comes as Tesla’s stock price has halved since December, driven by investors selling off shares and customer backlash over Musk’s political stances.
Despite these shifts, Musk’s net worth remains formidable. Forbes estimates his fortune at $323 billion, with his SpaceX stake now representing his largest single asset.
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