The business scientist of making money has done it again and Twitter (yes, X) is back to $44 billion valuation: “Elon Musk’s social media platform, X (formerly Twitter), is in talks with investors to raise funds at a $44 billion valuation, Bloomberg News reports.”. Simply, Twitter is reborn and resurrected.
Despite X’s attempt to maintain its original purchase valuation, Fidelity Investments, one of the investors that helped finance Musk’s Twitter buyout, has been marking down its stake in the company. As of December 2024, Fidelity valued its Twitter shares at about 70% less than the $44 billion Musk paid, indicating a substantial devaluation of the platform. This markdown suggests that institutional investors view X’s current financial state as weak, with limited growth prospects.
While Bloomberg notes that discussions over the new funding round are ongoing and subject to change, it remains unclear whether X will successfully secure the investment. There is also the possibility that the company could abandon the talks altogether.
Trump won the 2024 US presidential election and Twitter was the main global square for the planning and execution. With the anointing of Trump 2.0 presidency, everything in the Musk business world will see life. Core advertisers are returning, the old “propaganda” content is now the mainstream news, and suddenly the near-term trajectory of Twitter looks promising.
In a “major reversal,” Amazon is starting to spend more advertising dollars on X, after scaling back in 2023 amid concerns about content moderation, The Wall Street Journal reports, citing anonymous sources. Apple also is reconsidering its stance, having pulled out entirely, according to the Journal, again citing an anonymous source. Tensions with advertisers have weighed on X following its acquisition by Elon Musk, but its financials show “signs of a rebound,” Bloomberg reports.
We can learn one thing from Musk: he was gracious to compensate Twitter investors from xAI , and by doing that, he de-risked their investments and got them on his side. Some people would have said “Twitter is ours, xAL is mine”.
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My Response on LinkedIn: If I write what Musk did and put your name, would that be Ubuntu? Think beyond Musk. He started a new company and gave out a portion to those losing money because Twitter was struggling. That is a communal spirit. He could have kept the new company to himself. But he shared with his investors to ensure they won with him
With this playbook and Ubuntu spirit where people understand that he would do ALL necessary to make sure they do not lose money, Twitter has a future, and I expect it to return to the public market by Q4 2026!
That is the news today, but there is another important thing Musk did which few have discussed at scale. Musk bought Twitter (now called X), and opened holes in people’s finances, as the valuation of X has since lost to the gravity of value destruction. But this guy did something uncommon: he moved a huge percentage of shares from xAI (his AI company) to enable those who followed him in Twitter to be made whole. (Those investors are now smiling).
In other words, instead of seeing his Twitter investors crying, Musk said: listen, you trusted me and came along with me. Twitter did not fly because things happened, but I have another better “bird”, take it, and with this, you will be fine.
Elon Musk’s social media platform X, formerly Twitter, is in talks to raise money at a $44 billion valuation, Bloomberg reports, citing anonymous sources. That’s the same as what Musk paid for the company back in 2022, in a “remarkable turn of fortunes” after the takeover and subsequent loss of advertisers caused its value to plummet. The talks, which mark the first known investment round since it was taken private, are ongoing and could change.
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