Elon Musk’s social media platform, X, has seen its value soar back to $44 billion, a significant turnaround from its valuation of just $10 billion in September, according to a recent report. The company’s investors, including Fidelity Investments and Andreessen Horowitz, have exchanged existing stakes in the company for the new valuation.
The platform, formerly known as Twitter, was acquired by Musk in October 2022, and he subsequently rebranded it as X. Since then, Musk has relaxed moderation policies, leading to a loss of advertisers and revenue. However, in November 2023, X sued several major companies, including Unilever and CVS Health, accusing them of conspiring against the platform.
The new valuation is a remarkable turnaround for both X and its investors. The secondary deal will set the price for Musk’s $2 billion primary fund raise. Meanwhile, institutions that provided loans to finance Musk’s takeover have seen their stakes in his artificial intelligence start-up, xAI, increase, providing new security for lenders.
Despite this success, revenues at X have fallen since Musk took over. However, the platform still posted adjusted profits of $1.2 billion last year. Meanwhile, Musk’s stake in SpaceX has become his largest asset for the first time in five years, according to Forbes.
The company’s valuation is a significant shift from its recent struggles, but investors remain optimistic about X’s future prospects.
Source: https://www.theguardian.com/technology/2025/mar/19/value-elon-musk-x-rebounds-purchase-price