Elon Musk’s social media platform X is reportedly in the talks to raise money from investors at a $44 billion valuation. This was the same price at which he first bought the platform—then called Twitter.
However, some investors including Fidelity Investments have sharply written down the value of their stake as the platform struggled to retain advertisers after Musk’s takeover.
READ: Musk’s Starlink Wi-Fi can now be found on United Airlines flights (January 6, 2025)
These reported talks come after news of Musk’s companies soaring in valuation following Donald Trump taking office as president for the second time in January 2025.
Tesla shares have surged more than 40% since Trump’s victory, while SpaceX was valued at $350 billion in December 2024. Musk’s AI startup xAI is also in talks to raise $10 billion at a $75 billion valuation, up from $40 billion, according to reports.
Musk’s close ties with Trump, and the return of some of the advertisers to the platform seems to have improved things for X, helping banks offload the debt they issued to support Musk’s Twitter buyout.
Banks, led by Morgan Stanley, sold another chunky portion of loans that formed the $13 billion debt supporting Musk’s acquisition as the deal found broad interest from large fund managers attracted by the prospect of improving revenue of X.
READ: Will Elon Musk own TikTok soon? (January 14, 2025)
Talks of a new financing round for X are still one but the details could change, a Bloomberg News report said, adding that this would be the first known investment round for the social media company since Musk took it private.
However, not everything is going smoothly for Musk and X. In January 2025, just days before the Trump administration took over, the Securities and Exchange Commission filed new charges against Musk over his acquisition of Twitter, accusing him of underpaying investors by at least $150 million.