Elon Musk’s social media company, X, is in talks to secure fresh investment at a $44 billion valuation, the same price he paid when acquiring the platform, formerly known as Twitter in 2022, according to sources familiar with the matter.
The potential investment round, if completed, would signal renewed confidence in the company’s financial stability.
However, the sources indicated that the talks remain fluid and the terms could change or the financing could be scrapped altogether.
The latest development follows a period of turbulence for X. In December, Fidelity Investments marked down its Twitter stake by approximately 70% from the 2022 acquisition price.
Despite the valuation concerns, recent months have shown signs of recovery.
X’s financial outlook has improved, bolstered in part by a rise in advertising revenue tied to the upcoming U.S. election.
This turnaround was stated by Morgan Stanley, which recently finalized the sale of $3 billion in X debt at no discount to face value.
The bank’s earlier attempts to offload the debt had met resistance but investor demand has since increased, suggesting a shift in perception regarding X’s long-term prospects.
Musk’s business interests have also seen a broader resurgence. His electric vehicle company, Tesla Inc., has experienced a more than 40% stock surge since the election of President Donald Trump.
Also, SpaceX, his aerospace venture rose to a $350 billion valuation in December, making it the world’s largest private tech startup.
Beyond X, Musk is also seeking new investment for his artificial intelligence startup, xAI, which is exploring a funding round that could push its valuation to around $75 billion.
X holds a stake of approximately $6 billion in xAI, adding another dimension to its investment appeal.
Musk’s financial maneuvers have drawn increased attention amid his growing association with the Trump administration.
His proximity to the former president has influenced investor sentiment, with some betting that his political connections could benefit his business empire.
Key investors who supported Musk’s $44 billion acquisition of Twitter include venture capital firm Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority.
