Elon Musk’s X raises $1bn in new equity fundraising round

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Elon Musk’s X raised about one billion dollars in a new stock financing round estimated at $ 44 billion, which made its evaluation in line with the price paid by the billionaire in 2022.

Musk, the contributor to the majority of X, was among those who bought the stocks, according to many people familiar with the matter. Darsana Capital, an investor who bought debts associated with Musk’s X and 1789 Capital, has also participated, a project company among its partners Donald Trump Junior and invested in other musk companies.

The donation collection, which estimates X at $ 44 billion, including debt, comes at a time when Musk formulated close relations with Donald Trump and assumed a major role in the US president’s attempt to reduce the size of the federal government.

The shares in Tesla, Electric Automance, have recently retrieved MUSK, as some consumers avoided the brand, but parts of his own empire were strengthened.

Seven banks were holding their public budgets worth $ 12.5 billion in loans associated with Musk 2022 for X, known as Twitter, to empty most of them this year, with the help of debt appetite.

The banks left a few billion dollars in detainees of young debts after the last deals.

Many people who were briefed on the situation said. This will remove one of the most expensive loans that were installed in the acquisition, as one person indicated that the novice capital costs the company about 13 percent annually.

Separately, Musk also bought additional shares in the company from the current investors last year. According to public deposits from Kingdom Holding Company, a Saudi group and X, Musk bought $ 150 million in shares in the company.

In recent weeks, X has also made another secondary market deal, which is also estimated at 44 billion dollars.

The return to the original purchase price was a symbolic goal for Musk, according to one investor in X. After the group’s seizure, Musk diluted moderation policies on the platform, and left many advertisers, prompting revenues to a decrease.

The disclosure of Fidelity Investments, a supporter of X, in late September, included an assessment of the company that was less than $ 10 billion.

But some groups, including Amazon, have recently strengthened marketing spending, as MUSK’s relationship with Trump deepened.

The company’s financial affairs also showed signs of improvement, according to investors, and X published $ 1.2 billion in the amended profits before interest, taxes, depreciation and firefighting in 2024. This is almost flat with the period before the Musk seizure, although the familiar person was undergoing significant modifications.

The X evaluation was also greatly enhanced by the Musk decision to grant a 25 percent stake in XAI AI for investors in the social media company at early last year. Xai has jumped to a $ 45 billion rating since its foundation in 2023.

X rejected the comment. 1789 Darsana refused to comment.

Bloomberg stated for the first time that the shares collection round was closed.