Elon Musk’s social media platform X has reportedly surged to the $44 billion valuation he paid for it, marking a significant turnaround in his fortunes as the billionaire shifted from being a key ally of Donald Trump.
Investors recently assessed the platform, previously valued at $440 billion (£33.9 billion) on Twitter, through a secondary transaction, as reported by the Financial Times.
X is currently in the process of raising $2 billion from Fresh Capital in a major funding round by issuing new stocks to pay off debts exceeding $1 billion, which were evaluated at just $10 billion by existing investor Fidelity Investments in late September.
Musk, the world’s richest individual, took control of what was then Twitter in October 2022 and later rebranded it as X, tweeting “The Bird Is Free” in reference to the company’s logo. Subsequently, he made changes to the site’s moderation policy, resulting in some advertisers pausing or leaving.
Following a profanity-laden outburst at the New York Times Dealbook Summit in November 2023, Musk accused advertisers of attempting to “blackmail” him through boycotts, prompting legal action against the global advertising alliance and major companies like Unilever, Mars, and CVS Health for allegedly conspiring to avoid social networks.
The $44 billion valuation reflects a major shift for X and its investors, including Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital, and Fidelity Investments. The $2 billion primary fund raise was priced through the secondary agreement.
Since Musk’s acquisition, X’s revenue has declined, but it managed to record an adjusted profit of $1.2 billion last year. Additionally, Musk’s stake in SpaceX now surpasses his Tesla holdings as his most valuable asset, according to Forbes.
Forbes estimates Musk’s net worth at $323 billion, with his SpaceX shares valued at approximately $147 billion—about $2 billion more than his Tesla shares following a decrease in the automaker’s stock price.
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Source: www.theguardian.com
