Ailing social media platform X (formerly Twitter) which was taken over by Elon Musk in 2022, has apparently gotten a fresh start. According to latest Bloomberg reports, the platform has raised close to $1 billion in new equity from investors in a deal that values the company at roughly $32 billion — a valuation in line with when Musk took it private in 2022.
Musk’s purchase of Twitter in 2022 for $44 billion was a highly publicized and controversial acquisition. Initially, Musk expressed interest in transforming Twitter into a platform for free speech, emphasizing minimal content moderation and promoting open dialogue. However, the deal faced numerous delays and legal battles, including concerns over Twitter’s user base and the presence of bots, which Musk cited as a reason for reconsidering the acquisition. Eventually, Musk went through with the purchase, but his leadership has led to significant changes at the company.
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Under Musk’s direction, Twitter underwent a massive restructuring, including layoffs, the introduction of new features, and a shift in content moderation policies. His focus on monetization and free speech has been met with mixed reactions, as some users praise the increased freedom of expression, while others worry about the spread of misinformation. Musk’s ownership has drastically altered Twitter’s trajectory in the tech landscape.
According to Bloomberg, insiders report that Musk personally took part in the equity raise. The company is considering using some of the proceeds to pay down its remaining debt load, one of the people said.
Twitter before Musk
Before Musk’s acquisition, Twitter was a widely used social media platform focused on short, real-time messaging and news sharing. It played a central role in global conversations, with users ranging from ordinary individuals to politicians, celebrities, and businesses.
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Twitter had a relatively consistent approach to content moderation, aiming to balance free speech with preventing harmful behavior, like hate speech and misinformation. It was also a key platform for political discourse, activism, and breaking news.
Twitter’s revenue model relied heavily on advertising, and the platform continuously introduced features like trending topics and hashtags to engage users.