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In what is believed to be its first investment round since going private, Elon Musk-owned X is in talks with investors to raise money based on a valuation of $44 billion, reports Bloomberg News.
If that $44 billion figure sounds familiar, it should. In 2022, Musk purchased then-Twitter for $44 billion.
Bloomberg first reported on the talks, noting that discussions are ongoing, details may change, and the funding round could still be scrapped altogether.
If the company is indeed valued at $44 billion, it would mark a comeback of sorts, as many advertisers abandoned the platform following Musk’s takeover, triggering a colorful response from the new owner.
Advertisers including Comcast, IBM, and Disney have since resumed ad spend.
In December, Bloomberg reported that Fidelity Investments mutual fund boosted its stake in X to $5.53 million at the end of October, up from $4.19 million at the end of September. The firm had marked down its valuation of X by nearly 72% since it went private.
Separately, Bloomberg reported on Feb. 12 that Morgan Stanley is finalizing its sale of $3 billion of X debt at no discount to face value due to ample demand from investors.
Bankers’ pitch for the X debt shows $1.2 billion of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2024, with $400 million of that coming in the fourth quarter, on $710 million of revenue, attributed to an election-spurred bump, according to Bloomberg.
U.S. President Donald Trump has also had an effect on Musk’s other properties including Tesla. Tesla shares are up over 40% since the election, while SpaceX became the largest tech startup in the world when it was valued at $350 billion in December.
