Elon Musk’s X Plans To raise $44 billion From Investors

Elon Musk’s X Suffers major cyberattack
Elon Musk’s X Eyes Major Investment Round Amid Financial Turnaround

Twitter, rebranded as X since Elon Musk‘s acquisition, is reportedly in talks with investors to secure a major funding round, according to a Bloomberg report. Sources familiar with the matter state that the company is seeking to raise funds at a valuation of $44 billion, matching the price Musk paid to acquire Twitter in 2022. This potential funding round marks a substantial turnaround for the social media giant, which faced a significant exodus of users and advertisers following Musk’s takeover and subsequent overhaul of the platform.

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The discussions come at a critical juncture for X, which faced financial challenges in recent months. Fidelity Investments marked down the value of its stake in X by approximately 70% from the original acquisition price in December 2023. However, recent developments indicate a shift in sentiment, with X’s debt seeing a positive revaluation. Last week, Morgan Stanley successfully sold $3 billion worth of X debt at face value without any discount, a significant improvement from earlier attempts to offload the debt.

This renewed confidence in X’s financial stability and future prospects is reflected in the strong demand from investors, who are eager to back the company. The successful sale of X debt, despite initial hesitation from potential buyers, suggests that investors are increasingly optimistic about the company’s prospects.

Elon Musk’s other ventures have also witnessed notable success in recent months. Tesla, his electric vehicle company, has seen its shares surge over 40% since the election of former President Donald Trump, with whom Musk has maintained a close relationship. Meanwhile, SpaceX, Musk’s aerospace company, has achieved a staggering $350 billion valuation, solidifying its position as the world’s largest tech startup.

In addition to Tesla and SpaceX, Musk has been actively raising capital for his other ventures. His artificial intelligence startup, xAI, is currently seeking funding at a valuation of approximately $75 billion, according to sources. Notably, X holds a $6 billion stake in xAI, further intertwining the fortunes of Musk’s companies.

Musk’s close ties to President Trump have also influenced perceptions of X’s future. Some investors believe that Musk’s political connections could benefit his businesses, including X, by advancing their interests in regulatory and policy matters. Prominent investors who backed Musk’s acquisition of Twitter in 2022, including Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority, continue to support the company and may play a crucial role in the success of the current funding round.

The potential investment round would be the first known major fundraising effort for X since Musk took the company private in 2022. While the details of the financing round are still being finalized, the recent developments suggest that X is moving in the right direction, with increasing investor confidence and a renewed focus on financial stability.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources. This Article is Fact-Checked. See Policy.
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