Elon Musk’s social media platform X is reportedly in talks to secure new funds at a $44 billion valuation amid investor optimism, Bloomberg News reported Wednesday.
If successful, the funding round could mark a major comeback for the company after mask acquisitions and sweep changes drove users and advertisers. Before these latest talks, Fidelity Investments had already reduced the value of its Twitter stock by about 70% from its 2022 purchase price.
Elon Musk AI startup Xai raises $10 billion at $75 billion valuation
The report also added that Musk’s AI startup Xai is considering raising $10 billion at a $75 billion valuation. The news follows the successful debut of the Grok 3 AI model, overtaking Deepseek on the App Store and becoming the second most popular chatbot within 12 hours of its launch.
“Elon Musk’s X is in talks to raise funds from investors at a $44 billion valuation, according to people familiar with the issue. This is what Musk will do in 2022 to social media companies and Twitter. It’s the same price I paid when I was called,” Bloomberg reported.
Late last year, Bloomberg reported that Fidelity Investments had reduced the X rating by more than 70% from its 2022 purchase price.
Meanwhile, Prince Alwaleed bin Taral, a leading investor in X, provided a different perspective in a recent interview with Tucker Carlson. “We never lowered it [X]. Some entities marked down at 30, 40, and even 50%. But now, after the election, we have seen a dramatic reassessment of the market, along with President Trump, Musk and Trump’s strong alliance.
Musk made X private in 2022 and paid the same $44 billion price tag, but some investors, including Fidelity Investments, have since marked down their shares.
While advertisers’ pullbacks after the acquisition have made it difficult for the platform to maintain revenue, recent trends suggest a shift. Some advertisers are back, and Musk’s close ties with Donald Trump, coupled with growth in his other ventures, has been optimistic about X’s financial outlook.
Tesla stocks have skyrocketed by more than 40% after Trump’s election victory, but SpaceX was valued at $350 billion as of December. Investors are showing renewed interest in Musk-led companies, and its momentum appears to be profiting X. Banks, led by MORGANSTANLEY, has sold another majority of the $13 billion debt that led to Musk’s Twitter acquisition, and is betting on X’s profits boosted by a large fund manager.
Discussions about X’s new funding round are ongoing and details may change, Bloomberg reported. If confirmed, this marks the first external investment in the platform since the acquisition of Musk.
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