X's valuation has risen to $44 billion following financial changes led by Musk

The estimated value of the social network X has risen sharply to $44 billion after a series of important financial changes that took place under the leadership of Elon Musk. This is reported by the Financial Times, writes UNN.

Details 

According to the information, this increase occurred as a result of the so-called secondary share exchange agreement that took place earlier this month.

In particular, the company is actively working to attract new capital through a primary round, which aims to raise about $2 billion to repay the debt that Musk took on to finance the buyout of the company in 2022. 

After Musk took over the company, he relaxed the platform's moderation policy, which prompted many advertisers to leave. Fidelity Investments' disclosure at the end of September estimated the company at less than $10 billion. Musk bought Twitter for $44 billion.

The new valuation of $44 billion represents a rebound for Musk and the group's investors, including Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital and Fidelity Investments. The deal will help set a price for the future primary round.

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Although the company's advertising revenue has decreased since Musk's arrival at X, there are signs that his cost-cutting plan is beginning to bear fruit. In 2024, X showed an adjusted profit before interest, taxes and depreciation of $1.2 billion.

Two other people familiar with X's finances said there are signs that Musk's cost-cutting plan for the company is working and that revenues are improving. However, another person noted that the EBITDA figure was "heavily adjusted".

The situation also improved after Musk transferred a 25% stake in his AI startup xAI to investors in the social media company early last year. xAI was valued at $45 billion, and the new arrangement provided new guarantees to X's creditors and increased the platform's valuation.

One banker close to the fundraising said the upcoming primary round will help X "pay off the last part of the debt".

Let us remind you 

Earlier, it was reported that Elon Musk's company X is in talks to raise investments in the amount of $44 billion, which corresponds to the price Musk paid for the company in 2022.

In particular, this was the first known investment round for the social media company since Musk made it private.