Elon Musk’s purchase of Twitter for $44 billion in October 2022 marked a turning point for the company, which since then made significant changes that plunged it into chaos. Two and a half years later, X, now run by Musk, may be on track to regain its former value.
According to Bloomberg, X is in talks to raise funds worth $44 billion, valuing the platform at nearly the same amount Musk paid for it. This sudden turnaround comes as big advertisers, including Amazon and Apple, have begun re-investing in X after hate speech issues were addressed.
X’s rebound also has its roots in Musk’s AI company xAI, which is seeking a $75 billion valuation in a latest funding round. However, the biggest factor behind X’s resurgence is likely Musk himself, who now holds sway over government operations as a special employee under President Donald Trump.
Musk transformed X into a pro-Trump platform after taking over, pushing racist conspiracy theories and embracing “woke mind virus” rhetoric. With Trump back in office and Musk working in the executive branch, X has become essential for keeping up with news and conversation, making it relevant again.
The company’s turnaround is stunning given its initial valuation at 20% of what Musk paid for it. Fidelity valued X at just 30% of its original price three months ago. However, recent developments may have bolstered its value, as bondholders sold billions of dollars in their debt holdings and advertisers returned to the platform.
Despite competition from rival platforms, Musk’s leadership appears to be driving X’s resurgence, making it essential for those seeking real-time news and conversation. As investors bet on X, they are essentially backing Musk, not the company itself, which raises questions about its long-term viability.
Source: https://edition.cnn.com/2025/02/20/tech/elon-musk-x-valuation/index.html