Elon Musk’s X Valuation Rebounds to $44 Billion Amid Financial Turnaround And Strategic Shift

The social media platform belonging to Elon Musk would have seen its evaluation rebound at $ 44 million, the same Musk amount acquired the platform in 2022.

This step marks a significant recovery for the platform which experienced a drop in evaluation less than $ 10 billion in September 2024.

Despite the challenges of current income since Musk’s takeover, the platform reported an impressive turnaround in 2024, generating $ 1.2 billion in adjusted profits (EBITDA), corresponding to its pre-acquisition income figures. However, there are contradictory assessments of the evaluation of X.

According to a Bloomberg report, the company recently collected nearly a billion dollars in an agreement enhancing it at around $ 32 billion, Musk himself participating in the financing tour.

Bloomberg wrote,

“”Elon Musk X’s social network has collected nearly $ 1 billion in new investors’ equity, according to people knowing the issue an agreement that gives the company an assessment in accordance with When Musk was deprived in 2022. The company plans to use some of the products to reimburse its remaining debt charge. »»

In addition, X would have planned to remove an additional $ 2 billion thanks to a new equity sale, mainly to reimburse more than a billion dollars in junior debt linked to the original Musk acquisition. This fund collection effort indicates a strategic thrust to stabilize the financial situation of the company while continuing its transformation under the direction of Musk.

However, it should be noted that since the acquisition of the platform, Musk has brought several changes, To improve the platform, including the controversial reversal of content moderation policies, which led to an exodus of advertisers.

Rapid advance until May 2023, in the midst of the repercussions of Musk’s conflictual response to advertisers, he appointed Linda Yaccarino as CEO of X, with a main accent on the stabilization of the platform and the victory of advertisers who had made their expenses after Musk’s modifications in Musk Musk moderation policies

X has witnessed the efforts carried out by Yaccarino to repair relations and attract advertisers to the platform. The CEO’s strategic decision involved positioning X as a platform dedicated to children’s online security, aligning its position on the proposed legislative measures. Yaccarino’s efforts aimed to reshape the image of X and to rebuild confidence with business partners, recognizing the vital importance of advertisers for the financial sustainability of the platform.

However, the financial health of X improved after Musk transferred a 25% participation in its artificial intelligence startup, XAI, to investors of the platform. The IA company, now estimated at $ 45 billion, has provided additional financial security and has strengthened X position on the market. Meanwhile, the big banks such as Morgan Stanley, Bank of America and Barclays discharged most of the $ 12.5 billion in loans related to Musk’s Twitter buyout, further reshaping the company’s financial landscape.

Beyond advertising, X diversifies its sources of income to align with Musk’s ambition to transform the platform into an “all application”. A major step in this direction is the upcoming launch of X silverA digital portfolio and a Peer-to-Peer payment system, which aims to integrate financial transactions directly into the platform for transparent transfers and payments. The service should be deployed later this year in partnership with Visa.

Musk had previously revealed that X would offer high -performance monetary market accounts, debit cards, checks and loan services, to allow users to send money all over the world instantly and in real time.

With a renewed financial vision and an expanding commercial model, X seems to enter a new growth phase, despite the challenges that have shaped its evolution in the past three years.