Musk’s X targets $44 bn valuation in new funding push

New Delhi: Elon Musk’s social media platform X is reportedly in discussions to raise fresh capital from investors at a $44 billion valuation, a figure that mirrors the price Musk paid to acquire the company—then known as Twitter—in October 2022. 

The news, first reported by Bloomberg on February 19, citing sources familiar with the matter, marks a potential turning point for X, which has faced a rollercoaster of challenges and valuation swings since Musk’s high-profile takeover.

The talks, still in progress as of this week, could see X secure its first known investment round since going private under Musk’s ownership. While details remain fluid and the company could yet abandon the effort, a successful raise at $44 billion would signal a remarkable recovery for X. 

After Musk’s acquisition, the platform saw a steep decline in perceived value—Fidelity Investments slashed its stake by 70% in December 2024, valuing X at just $12.3 billion amid advertiser exodus and operational upheaval. Now, with investor interest rekindled, X appears poised to reclaim its original price tag, defying earlier skepticism that Musk had overpaid.

Sources suggest the funds would fuel X’s ambitious expansion plans, including enhancements to its nascent payments system, X Money, and new video content offerings. The capital could also help alleviate the company’s substantial debt burden, a lingering legacy of the $13 billion in loans that financed Musk’s buyout. 

X’s own fortunes appear buoyed by Musk’s growing influence in Trump’s administration and a rebound in advertising revenue tied to heightened user activity during the election cycle. Major brands like Amazon and Apple have reportedly resumed campaigns on the platform, reversing an earlier flight triggered by Musk’s content moderation overhaul.

X’s $6 billion stake in Musk’s AI venture, xAI, adds another layer of intrigue. With xAI reportedly seeking $10 billion at a $75 billion valuation—up from $40 billion—the ripple effects could further bolster X’s appeal to investors.