Elon Musk’s social media platform, X (formerly Twitter), has raised nearly $1 billion in new equity funding from investors.
According to a Bloomberg report citing sources familiar with the matter, the deal values the company’s equity at approximately $32 billion, aligning with the valuation at the time Musk acquired the platform in 2022.
Bloomberg noted that the Twitter buyout included at least $12.5 billion in debt, meaning the latest fundraising was completed at roughly the same $44 billion enterprise value as Musk’s initial purchase.
Musk himself participated in the equity raise, alongside other investors, including Darsana Capital Partners, which had previously purchased some of X’s debt earlier this year.
Additionally, 1789 Capital, an investment firm that has backed Musk’s ventures such as xAI and SpaceX, also contributed to the funding round.
Musk’s broader funding strategy
Musk has frequently turned to private markets to secure funding for his ventures. Recently, SpaceX completed a tender offer valuing the company at approximately $350 billion, while xAI is reportedly seeking fresh funding at a valuation of $75 billion.
- However, while Musk’s private companies have seen significant growth, Tesla Inc., his publicly traded automaker, has faced challenges.
- Tesla’s shares have plummeted by over 40% this year, driven partly by Musk’s political prominence, which has alienated some consumers, and heightened competition in the electric vehicle (EV) market.
- On Tuesday, Tesla’s stock dropped 5.3% following news that Chinese automaker BYD Co. unveiled an EV capable of charging as quickly as refueling a gas-powered vehicle.
X’s tumultuous journey under Musk
Since Musk acquired Twitter in 2022 and rebranded it as X, the platform has experienced significant upheaval, including deep workforce cuts and a mass exodus of advertisers.
Many marketers paused or withdrew their spending due to concerns about their ads appearing alongside inappropriate content.
In response, Musk has taken legal action to bring advertisers back. X is currently suing several major brands for withholding advertising spending, alleging that their decisions constitute anti-competitive behavior.
- While some advertisers have returned, industry insiders suggest that Musk’s legal threats and his influential role in the political landscape may be influencing their decisions.
- Meanwhile, X’s business has shown signs of recovery since the re-election of President Donald Trump, though Fidelity Investments, an X investor, marked down its stake in the company by 68% as of January.
- In addition to the return of some advertisers, bankers recently sold X debt that they had held since Musk’s initial acquisition.
