Social media platform X has regained a $44 billion valuation, marking a significant financial turnaround since Elon Musk's acquisition. The increase follows a recent secondary deal where investors exchanged existing stakes.
X is also working to secure approximately $2 billion in fresh funding to reduce over $1 billion in junior debt tied to Musk's 2022 buyout of Twitter. This resurgence comes after Fidelity Investments valued the company at under $10 billion in September 2023.
Since acquiring Twitter for $44 billion, Musk has implemented aggressive cost-cutting measures and eased content moderation policies, prompting advertisers to withdraw and revenue to decline.
Despite this, X reported $1.2 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2024—comparable to pre-acquisition figures. While some insiders see signs of financial recovery, others caution that the EBITDA figures may be heavily adjusted.
Investor sentiment toward X's debt improved following Donald Trump's election victory in November. Musk's close ties to the incoming administration and his leadership in the newly established Department of Government Efficiency have fueled optimism. Additionally, Musk's decision to transfer a 25 percent stake in his AI startup, xAI, to X investors has further bolstered confidence in the platform's long-term prospects.
Beyond advertising, X is diversifying its revenue streams. CEO Linda Yaccarino announced plans to launch X Money, a digital payments service, in partnership with Visa later this year. The company is also deepening its integration with xAI, recently introducing Grok 3, its latest AI chatbot, for premium users.
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