Elon Musk's social media platform, formerly known as Twitter and now referred to as X, is reportedly in discussions with investors to raise funds at a valuation of $44 billion, as per Bloomberg News. Musk acquired X for the same amount in 2022, although some investors, such as Fidelity Investments, have significantly devalued their stake due to challenges in retaining advertisers post-acquisition.
X has not yet responded to a request for comment from Reuters. The potential investment talks coincide with the remarkable increase in valuations of Musk's other ventures following Donald Trump's U.S. presidential election win.
Since Trump's victory, Tesla's shares have surged by over 40%, with SpaceX reaching a valuation of $350 billion in December. Furthermore, reports suggest that Musk's AI startup, xAI, is in discussions to secure $10 billion at a valuation of $75 billion, up from $40 billion.
Musk's association with Trump and the return of certain advertisers to X have raised optimism regarding better financial prospects for the platform. This positive outlook has facilitated banks in offloading debt incurred to support Musk's acquisition of Twitter.
With Morgan Stanley leading the way, banks have proceeded to sell a significant portion of the loans comprising the $13 billion debt that underpinned Musk's acquisition. Notably, the deal attracted considerable interest from major fund managers enticed by the potential revenue growth at X.
According to Bloomberg News, discussions regarding the new financing round for X are ongoing, and specific details are subject to change. This round would mark the first publicly known investment in the social media company since Musk privatized it.