Elon Musk’s social media platform, X, is seeking to raise new investment at a valuation of $44 billion—the exact amount Musk originally paid when he acquired the company, formerly known as Twitter, in October 2022.
Since Musk’s takeover and rebranding of the platform, X has suffered a massive decline in revenue, reportedly losing nearly half of what Twitter once generated. This has led to significant financial losses for investors. In September of last year, Fidelity, one of Musk’s financial backers, estimated that its stake in X had lost 79 percent of its value since the acquisition.
However, the landscape has shifted following the U.S. presidential election. Musk publicly backed Donald Trump’s campaign, establishing a political action committee (PAC) that contributed hundreds of millions of dollars to support the Republican candidate. Following Trump’s victory, Musk was appointed to lead the newly created Department of Government Efficiency (DOGE), granting him considerable influence over federal spending.
Now, with X planning to introduce financial transactions on its platform and integrate Musk’s AI company, xAI, and its Grok chatbot, the company is once again seeking investors—this time at the same $44 billion valuation that was once considered an overpayment.
With Musk now in a stronger political and financial position, X’s latest fundraising efforts could prove to be a turning point for the platform’s future.
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