Social network X, formerly known as Twitter and owned by Elon Musk, is negotiating to attract investment at an estimated $44 billion, the same amount Musk paid for the company in 2022. This was reported by Bloomberg, citing knowledgeable sources.
After Elon Musk acquired Twitter in 2022, renamed the social network X and took it private, the company's value fell by almost 80% to $9.4 billion, according to analysts. The new round of funding may help the company get out of its predicament, which, among other things, was caused by the fact that many advertisers left the platform.
Negotiations on new investments are still ongoing, and their terms may change. Sources familiar with the situation note that the company may also refuse to raise funding, which could be the first round of investment after the acquisition by Musk.
Elon Musk's other companies, such as Tesla and SpaceX, gained value after Donald Trump won the election. The car company's shares rose by 40% after the election, and SpaceX's new valuation of $350 billion made it the largest tech startup in the world.
xAI, another startup of Musk's that is closely related to X, is also planning to attract new investments that could help raise its value to $75 billion. The AI startup is currently negotiating with investors, but no deals have been finalized yet.
At the same time, the situation in the social network remains difficult. A recently released letter from Musk revealed that the company is barely breaking even. Moreover, financial pressure is increasing as American banks are trying to sell some of the $13 billion of debt associated with the acquisition of the platform in 2022.