Elon Musk's X Experiences Valuation Recovery to $44 billion.
X Social media platform's worth skyrockets back to its acquisition price following a significant turnaround in circumstances.
The value of Elon Musk's social media platform, X, has reportedly bounced back to the $44 billion he invested in it.
Investors assessed the platform at $44 billion in a secondary transaction this month, trading existing shares in the company.
This valuation marks a considerable rise from Fidelity Investments' assessment of $10 billion as recently as late September.
X is also pursuing $2 billion in new funding to settle over $1 billion in junior debt.
Since Musk took charge of the platform in October 2022, he has relaxed moderation policies, leading many advertisers to pause or withdraw.
The company has since filed a lawsuit against a global advertising consortium and several major corporations, alleging they unlawfully coordinated to avoid the social network.
Revenues for X have declined since Musk's acquisition, but the company reported adjusted earnings of $1.2 billion last year.
The new valuation is a positive development for investors such as Andreessen Horowitz, Sequoia Capital, and Fidelity Investments.
Furthermore, institutions that provided financing for Musk's takeover of X benefitted after he granted them a 25% share in his artificial intelligence venture, xAI.
xAI has now reached a valuation of $45 billion, offering additional security to lenders and aiding in the revised valuation of X. Meanwhile, Musk's significant stake in Tesla is no longer his top asset, with SpaceX emerging as his most valuable asset for the first time in five years, valued at approximately $147 billion.
Investors assessed the platform at $44 billion in a secondary transaction this month, trading existing shares in the company.
This valuation marks a considerable rise from Fidelity Investments' assessment of $10 billion as recently as late September.
X is also pursuing $2 billion in new funding to settle over $1 billion in junior debt.
Since Musk took charge of the platform in October 2022, he has relaxed moderation policies, leading many advertisers to pause or withdraw.
The company has since filed a lawsuit against a global advertising consortium and several major corporations, alleging they unlawfully coordinated to avoid the social network.
Revenues for X have declined since Musk's acquisition, but the company reported adjusted earnings of $1.2 billion last year.
The new valuation is a positive development for investors such as Andreessen Horowitz, Sequoia Capital, and Fidelity Investments.
Furthermore, institutions that provided financing for Musk's takeover of X benefitted after he granted them a 25% share in his artificial intelligence venture, xAI.
xAI has now reached a valuation of $45 billion, offering additional security to lenders and aiding in the revised valuation of X. Meanwhile, Musk's significant stake in Tesla is no longer his top asset, with SpaceX emerging as his most valuable asset for the first time in five years, valued at approximately $147 billion.
