Elon Musk-owned micro-blogging platform, X (formerly Twitter), has reportedly secured nearly $1 billion in new equity funding from investors, valuing the company at approximately $32 billion. According to a report by Bloomberg, Musk himself participated in this funding round. Also, the company is considering using some of the proceeds to reduce its existing debt.
Interestingly, this valuation aligns with the company’s worth when Musk took it private in 2022. As per the report, Darsana Capital Partners also participated in this equity round. The participation becomes noteworthy as in January 2025, Darsana Capital Partners (along with Diameter Capital Partners) purchased a significant portion of $1 billion in debt tied to Elon Musk’s acquisition of Twitter (now X). The transaction was part of a broader effort by banks to sell portions of the $13 billion debt associated with Musk’s buyout of the platform.
However, another recent report from the Financial Times suggests that X’s valuation has rebounded to $44 billion, the same amount Musk paid for its acquisition in 2022. It seems there are currently two different expected valuations of X, but regardless of this difference, it’s clear that the company has made a strong financial recovery.
Notably, after Musk’s takeover in 2022, X experienced a substantial decline in value. In September 2024, Fidelity Investments estimated that X’s worth had plummeted by nearly 80%, valuing the company at approximately $9.4 billion. The decline in valuation follows a period of financial challenges, including revenue declines and advertiser withdrawals due to policy changes.
Even, at the start of this year, the US Securities and Exchange Commission filed a lawsuit against X over allegedly committing fraud with its investors. According to the SEC’s new lawsuit, this could be a case of defrauding the company’s stakeholders of $150 million.
But now, despite all these challenges, X’s valuation is showing signs of recovery due to several factors. In fact, the valuation boost is partly credited to Musk offering lenders a 25% stake in his AI start-up, xAI, valued at $45 billion. Additionally, investor interest has grown following strategic moves, including plans to launch X Money (a digital wallet service) and integrate AI technologies to enhance the platform’s services.
Meanwhile, experts believe that Elon Musk’s support for the new U.S. President, Donald Trump, and his increasing influence on government policy are also playing an important role in improving investor sentiment toward X.
In terms of financial numbers, the company’s annual revenue dropped significantly by nearly 50% over two years, falling to $2.7 billion last year. But X is now reportedly nearly twice as profitable based on adjusted earnings.
Speaking of pattern, Elon Musk frequently raises money from private investors (rather than public stock markets) to fund his companies. For example, SpaceX recently completed a ‘tender offer,’ which means existing shareholders were allowed to sell their shares to new or existing investors. This deal valued SpaceX at $350 billion. Also, Musk’s artificial intelligence startup, xAI is reportedly seeking funding at a valuation of approximately $75 billion. This becomes significant as X holds a $6 billion stake in xAI.
