Elon Musk’s social media platform X, formerly known as Twitter, is in discussions to raise funds from investors at a valuation of $44 billion, according to a Bloomberg report on Wednesday.
This valuation matches the amount Musk paid to acquire the platform in 2022.
The ongoing talks for a new financing round could result in changes to the terms, and there’s a possibility that the negotiations might not lead to a deal, sources familiar with the matter said. X, however, has not yet responded to requests for comment from Reuters.
This marks the first known investment round for X since Musk took the company private. The potential funding round is seen as a significant turn of events for the platform, which has faced challenges following Musk’s acquisition, including a loss of users and advertisers.
In related news, Reuters recently reported that major financial institutions—Morgan Stanley, Bank of America, and Barclays—are preparing to sell up to $3 billion in debt holdings in X. This comes amid a rebound in demand for the company’s debt, a shift from earlier attempts that had seen tepid interest from investors.
Musk, who is also known for his leadership of Tesla and SpaceX, has seen growth in the valuations of his other ventures. Tesla shares have surged more than 40% since the election of President Donald Trump, and SpaceX’s valuation recently reached $350 billion, making it the world’s largest private tech startup. Musk’s artificial intelligence venture, xAI, is also in talks to raise funds, with a valuation potentially reaching $75 billion.
Despite recent financial challenges, such as a significant markdown of its valuation by Fidelity Investments, which reduced its Twitter stake by about 70%, X’s fortunes seem to be showing signs of improvement. Investors in Musk’s ventures, including Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority, remain engaged in his businesses, betting on his continued success across different sectors.
