Musk's X eyes $44B valuation in capital raise talks

Elon Musk’s social media platform, X, is in discussions with investors to raise capital at a $44 billion valuation, the same amount Musk paid to acquire the company in 2022.

Bloomberg reports that this funding round could mark a turnaround for X and its early financial backers, which include venture capital firms Andreessen Horowitz, Sequoia Capital, and the Qatari Investment Authority.

However, discussions are ongoing, and there is no guarantee of a finalised deal.

The capital raise comes amid speculation that X will launch its in-app payment service, "X Money," in 2025.

The platform has already secured money transmitter licenses in 41 U.S. states.

Since Musk’s acquisition, X has faced declining advertising revenue, prompting concerns over its business model.

Despite the return of major advertisers like Apple, X’s U.S. ad revenue is projected to drop to $1.4 billion in 2024, down 28% from nearly $2 billion in 2023.

Following Donald Trump's reelection, Musk’s net worth increased by $20 billion, driven by a rise in the value of his companies.

Tesla’s stock reached around $488 per share in December 2024, and SpaceX was valued at $350 billion.

Meanwhile, Musk’s artificial intelligence firm, xAI, is reportedly in talks to raise $10 billion at a $75 billion valuation. X holds an approximate $6 billion stake in xAI.

Since Musk’s takeover, X has undergone major changes, rebranding Twitter Blue to X Premium and introducing new features like audio and video calling.

The company has also reduced its workforce by about 80%.

Fidelity Investments, an original co-investor in Musk’s acquisition, had previously cut its valuation of X by about 72% as of late October.