Investors valued the X platform at $44 billion, which corresponds to the price at which Elon Musk bought it in 2022. Back in September 2024, the social network was worth $10 billion, the Financial Times writes.
Investors valued Platform X at $44 billion in a secondary deal earlier this month, in which they exchanged existing stakes in the company.
There are signs that Musk's cost-cutting plan is working and that revenue is improving, according to anonymous sources familiar with X's finances. However, another person noted that EBITDA was "wildly adjusted."
The situation improved after Elon Musk transferred a 25% stake in his startup xAI to the social network's investors in early 2024. By valuing xAI at $45 billion, the deal provided additional security for X's creditors and helped the platform's value grow.
Another factor driving the value increase was the return of major advertisers like Nestlé, Lego, Pinterest and Shell after Musk won a court case to boycott the platform. In addition, Amazon has recently increased marketing spending on X as Musk's relationship with Trump has deepened.
X is also actively working to diversify its revenue streams, aiming to become, as Musk calls it, “the app for everything.” In January 2024, CEO Linda Iaccarino announced that the company would launch X Money, a digital wallet and peer-to-peer payments service, later this year, with Visa as its first partner.