Elon Musk’s social media platform, X, has made a remarkable comeback in terms of valuation, reaching $44 billion. This significant rebound comes after the turbulent takeover by the Tesla CEO in 2022. The Financial Times recently reported on the platform’s new valuation, citing sources familiar with the matter.
According to the report, investors valued X at $44 billion in a recent secondary deal where existing stakes in the platform were exchanged. Additionally, X is in the process of raising fresh capital in a primary round aiming to raise around $2 billion. This new capital will be used to pay off over $1 billion in junior debt from Musk’s 2022 Twitter acquisition.
The $44 billion valuation represents a substantial increase from previous estimates. Just last year, Fidelity Investments valued X at below $10 billion. Interestingly, Fidelity was one of the investors in the recent funding round, along with Andreessen Horowitz, Sequoia Capital, 8VC, and Goanna Capital.
Musk’s cost-cutting measures post-acquisition have proven to be effective, despite facing criticism initially. Prior to Musk’s takeover, Twitter reported an adjusted EBITDA of $682 million and $5 billion in revenue. In contrast, in 2024, X reported an EBITDA of $1.25 billion and $2.7 billion in annual revenue. These figures have exceeded expectations for X’s investors, as reported by the Wall Street Journal.
X’s valuation is further bolstered by its stake in Elon Musk’s artificial intelligence startup, xAI, which is behind the development of Grok, a large language model. Additionally, X Money, a payment service backed by Visa, is set to launch later this year, adding new streams of revenue for the platform.
Overall, X’s resurgence in valuation showcases the success of Musk’s strategic decisions and the platform’s potential for growth and innovation in the future.