Elon Musk’s X Social Network Platform is in conversations to raise investors money with an assessment of 44,000 million dollars, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Musk bought X, previously Twitter, for the same price in 2022, but some investors, including Fidelity Investments, drastically reduced the value of their participation, since the platform had difficulties in retaining advertisers after the acquisition.
The reported conversations occur when the valuations of other Musk companies shot after Donald Trump’s victory in the US presidential race.
Tesla shares rose more than 40% since Trump’s victory, while Spacex was valued at 350,000 million dollars in December. The artificial intelligence startup of Musk, XAI, is also in conversations to raise 10,000 million with an assessment of 75,000 million, compared to 40,000 million, according to reports.
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X would have its first financing round from Musk acquisition
Musk’s close links with Trump and the return of some advertisers to X increased the expectations of an improvement of finance on the platform. That has helped banks to get rid of the debt they issued to support the purchase of Twitter by Musk, said a source earlier this month.
The banks, led by Morgan Stanley, sold another important part of the loans that formed the debt of 13,000 million dollars that supported the acquisition of Musk, since the agreement found a broad interest of the great managers of funds attracted by the perspective of Improve the income of X.
The conversations for the new X financing round were still underway and the details could change, according to the Bloomberg News report, which added that this would be the first round of investment known for the social media company since Musk privatized it.
With Reuters information
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