Musk’s X Eyes $44 Billion Valuation in New Funding Talks

• Elon Musk‘s X is reportedly discussing a fundraising round at a $44 billion valuation, the same price Musk paid for the company when he acquired Twitter in 2022.
• This potential investment comes amid a continued positive trend in Musk’s business ventures, with Tesla (TSLA) and SpaceX seeing valuation increases, and xAI seeking $10 billion at a $75 billion valuation.
• The return of advertisers and Musk’s active engagement on X have bolstered the platform’s financial outlook, helping banks offload debt from the Twitter acquisition and signaling a potential turnaround.

Elon Musk’s X, formerly known as Twitter, is reportedly in discussions to raise funds at a $44 billion valuation, matching the price Musk paid for the platform in 2022. Despite previous downturns in valuation from investors like Fidelity Investments, who adjusted their stakes downwards due to challenges in retaining advertisers, the potential investment round suggests a renewed interest in X. This interest coincides with a broader positive momentum across Musk’s portfolio which has seen significant valuation boosts for Tesla (TSLA) and SpaceX, with Tesla’s shares increasing by over 80% y/y and SpaceX reaching a $350 billion valuation.

The financial landscape for X appears to be brightening due to the return of some advertisers, which could stabilize and possibly enhance the platform’s financial health. This optimism is reflected in the banking sector, where Morgan Stanley (MS) has successfully sold portions of the $13 billion debt used to finance Musk’s acquisition of Twitter, attracting fund managers with the promise of X’s revenue recovery.

Moreover, Musk’s ventures continue to attract substantial investment, with his AI company, xAI, also engaging in talks to secure $10 billion at an elevated $75 billion valuation. This activity underscores Musk’s enduring influence in the tech and investment communities, leveraging his high-profile business successes to potentially turn around X’s fortunes. However, the specifics of X’s new financing round remain fluid, with Bloomberg noting that while discussions are ongoing, details could still shift, marking this as the first notable investment round since X went private under Musk’s control.

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