WASHINGTON (Diya TV) — Elon Musk’s social media platform, X (formerly Twitter), is reportedly in discussions to raise funds at a $44 billion valuation, matching the price Musk paid during its acquisition in October 2022. This development comes after significant fluctuations in the company’s valuation over the past two years.
Following the acquisition, X experienced a substantial decline in value, with Fidelity Investments marking down its stake by 72% at one point. However, recent reports indicate a resurgence in investor confidence. Notably, major banks led by Morgan Stanley successfully sold $5.5 billion in debt associated with Musk’s purchase at 97 cents on the dollar, suggesting stabilization in X’s revenue streams.
Contributing to this renewed interest is X’s 10% stake in Musk’s artificial intelligence venture, xAI, which is currently seeking a $75 billion valuation in its latest funding round. This strategic investment positions X to benefit from advancements in AI technology.
Musk’s prominent role in the current administration has also played a part in bolstering X’s prospects. As head of the Department of Government Efficiency, Musk has become a key figure in President Donald Trump’s executive branch, influencing various federal operations. This political alliance has enhanced X’s significance as a platform for engaging with the administration, attracting advertisers back to the platform.
In a related development, members of Musk’s private security team have been deputized by the U.S. Marshals Service, granting them certain federal law enforcement privileges. This move aims to enhance Musk’s security as he navigates his dual roles in the private sector and government.
While these factors have contributed to X’s potential return to its original valuation, the outcome of the ongoing funding discussions remains uncertain. The company’s future will depend on its ability to maintain investor confidence, navigate its political connections, and capitalize on its technological investments.
