The market value of the social network, controlled by Elon Musk, fired to $ 44 billion, marking a strong turnaround to the company. The number has been a significant recovery since September last year, when estimates pointed out that the company was worth less than $ 10 billion.
The new valuation was established in a secondary transaction held this month, in which investors negotiated existing stakes in the company, according to information from the Financial Times.
In addition, the publication says, the X is preparing a primary capture of about $ 2 billion to pay more than $ 1 billion in musk -tuned debts in the acquisition of the platform in 2022 when it was still called Twitter.
The turnaround occurs at a time when Musk intensifies his proximity to President Donald Trump, which has rekindled the interest of investors in the company. Since the purchase of the social network, the billionaire has reduced content moderation policies, leading to the escape of advertisers and a drop in revenue.
Fidelity Investments documents indicated, at the end of September, that the company was valued at less than $ 10 billion, a significant decline compared to the price paid by Musk. The recent leap represents a relief for Musk and X investors, including Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital and Fidelity Investments. The agreement will also serve as a reference for the next round of fundraising.
Account adjustment
Despite the drop in revenues since the acquisition, the X reported an adjusted EBITDA of approximately $ 1.2 billion in 2024, a number close to that registered before the purchase by Musk. According to sources, there are signs that cost cutting measures implemented by the entrepreneur are working and revenue begins to recover. However, there are those who warn that Ebitda released is “highly adjusted.”
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OX also received an impetus after Musk offers 25% stake from his artificial intelligence startup, Xai, to social network investors. XAI has already reached a market value of US $ 45 billion, providing new guarantees to X creditors and contributing to the revaluation of the social network.
In the credit market, stressed the Financial Timesa group of seven large Wall Street banks, including Morgan Stanley, Bank of America and Barclays, sold almost all $ 12.5 billion debt assumed by Musk to finance Twitter’s acquisition. Interest in loans would have improved after Trump’s victory in the November presidential election, driven by the expectation that Musk will influence the new administration.
