Elon Musk’s X, formerly known as Twitter, is in discussions to raise funds from investors at a $44 billion valuation, Bloomberg News reported Wednesday, citing sources familiar with the matter.
Musk acquired the platform for the same price in 2022, but some investors, including Fidelity Investments, have significantly reduced their valuation of the company amid advertiser retention challenges.
The talks come as valuations of Musk’s other businesses have risen following Donald Trump’s victory in the U.S. presidential election. Tesla shares have climbed more than 40%, while SpaceX was valued at $350 billion in December.
Musk’s AI startup, xAI, is also in discussions to raise $10 billion at a $75 billion valuation, up from $40 billion, according to reports.
Musk’s ties with Trump and the return of some advertisers to X have improved market sentiment about the platform’s financial prospects.
A Morgan Stanley-led group of banks has sold another portion of the $13 billion debt that backed Musk’s Twitter buyout. Large fund managers reportedly showed interest, anticipating better revenue performance at X.
Talks for the new X financing round are ongoing, and details could change, Bloomberg reported. This would be the first investment round for the social media company since Musk took it private.
