Key Points
- X (formerly Twitter) is discussing raising new funding at a valuation of $44 billion, the same as Musk’s 2022 purchase price.
- The talks are ongoing, with no final decision on whether the financing will proceed.
- Morgan Stanley, Bank of America, and Barclays are preparing to sell $3 billion in X-related debt.
- The company faces financial uncertainty, with advertising revenue declines and competition from platforms like Threads and Bluesky.
Elon Musk’s social media platform, X (formerly Twitter), is reportedly considering raising funds from investors at a $44 billion valuation—the same price Musk paid to acquire the company in 2022.
According to Bloomberg News, sources familiar with the matter revealed that the talks are still in progress. The final terms could change, or the funding discussions could be dropped altogether. The company has not made any official statements regarding the potential financing.
Since Musk’s takeover, X has undergone significant changes, including a shift toward subscription-based services, workforce reductions, and an increased focus on artificial intelligence and payments integration. Despite these efforts, the company has faced advertising revenue declines and challenges rebuilding its financial position.
The potential fundraising round comes amid recent reports that Morgan Stanley, Bank of America, and Barclays are preparing to sell up to $3 billion in debt holdings tied to X. The banks had originally helped finance Musk’s purchase of Twitter, and the decision to offload debt suggests an effort to mitigate exposure to the company’s financial risks.
Musk has aggressively pushed monetization strategies for X, introducing a premium subscription model, allowing creators to earn through ad revenue sharing, and exploring AI-powered features to boost engagement. However, investor confidence in X’s long-term growth remains uncertain, as competitors like Meta’s Threads and Bluesky continue to attract users seeking alternative platforms.
If successful, the funding round would provide X with additional capital to continue transforming into a broader “everything app” that integrates social media, financial services, and AI-driven content discovery. Whether the company can regain market dominance and stabilize its revenue streams remains a key question for investors and industry observers.
