Elon Musk-owned social media platform X, has reportedly seen its valuation rebound to $44 million, the same amount Musk acquired the platform in 2022.
This milestone marks a significant recovery for the platform which saw a drop in valuation below $10 billion in September 2024.
Despite ongoing revenue challenges since Musk’s takeover, the platform reported an impressive turnaround in 2024, generating $1.2 billion in adjusted earnings (EBITDA), matching its pre-acquisition revenue figures. However, there are conflicting assessments of X’s valuation.
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According to a Bloomberg report, the company recently raised nearly $1 billion in a deal valuing it at approximately $32 billion, with Musk himself participating in the funding round.
Bloomberg wrote,
“Elon Musk’s social network X has raised close to $1 billion in new equity from investors, according to people with knowledge of the matter a deal that gives the company a valuation in line with when Musk took it private in 2022. The company is considering using some of the proceeds to pay down its remaining debt load.”
Also, X is reportedly planning to raise an additional $2 billion through a new equity sale, primarily to pay off over $1 billion in junior debt tied to Musk’s original buyout. This fundraising effort signals a strategic push to stabilize the company’s financial position while continuing its transformation under Musk’s leadership.
It is however worth noting that since acquiring the platform, Musk has made several changes, to improve the platform, including the controversial rolling back of content moderation policies, that led to an exodus of advertisers.
Fast forward to May 2023, amidst the fallout from Musk’s confrontational response to advertisers, he appointed Linda Yaccarino as CEO of X, with a primary focus on stabilizing the platform and winning back advertisers who had pulled their spending after Musk’s changes in content moderation policies
X witnessed efforts led by Yaccarino to mend relationships and entice advertisers back to the platform. The CEO’s strategic move involved positioning X as a platform dedicated to ensuring the online safety of children, aligning its stance with proposed legislative measures. Yaccarino’s efforts were aimed at reshaping X’s image and rebuilding trust with commercial partners, recognizing the vital importance of advertisers for the platform’s financial sustainability.
However, X’s financial health improved after Musk transferred a 25% stake in his artificial intelligence startup, xAI, to the platform’s investors. The AI company, now valued at $45 billion, has provided additional financial security and bolstered X’s standing in the market. Meanwhile, major banks such as Morgan Stanley, Bank of America, and Barclays have offloaded most of the $12.5 billion in loans tied to Musk’s Twitter buyout, further reshaping the company’s financial landscape.
Beyond advertising, X is diversifying its revenue streams to align with Musk’s ambition of turning the platform into an “everything app.” A major step in this direction is the upcoming launch of X Money, a digital wallet and peer-to-peer payment system, which aims to integrate financial transactions directly into the platform for seamless money transfers and payments. The service is expected to roll out later this year in partnership with Visa.
Musk had previously disclosed that X would offer high-yield money market accounts, debit cards, checks, and loan services, to let users send money anywhere in the world instantly and in real-time.
With a renewed financial outlook and expanding business model, X appears to be entering a new phase of growth, despite the challenges that have shaped its evolution over the past three years.