Key Takeaways
- Elon Musk’s X is reportedly discussing raising fresh funding from investors at a $44 billion valuation.
- The valuation marks a turnaround for Elon Musk’s social media company after experts estimated its value had substantially decreased.
- The funding round discussions mark the social media company’s first since Musk took it private in 2022.
Elon Musk’s social media platform X is in discussions to raise fresh funding from investors at a $44 billion valuation, matching the price he paid for the company two years ago.
The discussions mark a significant turnaround from recent reports it was worth 80% less than when Musk purchased it—following a steep decline in advertisers on the platform.
Elon Musk Seeks X Funding at Original Valuation
Discussions are currently ongoing and are subject to change, Bloomberg reported, citing people familiar with the matter.
The publication also noted that the company could also abandon talks altogether.
It is currently unclear which investors are involved in the discussions. Andreessen Horowitz, Sequoia Capital, and Binance were among the original investors who backed Musk’s X purchase.
Turnaround of X
The move highlights a significant turnaround for the social media platform since Musk’s acquisition.
Following the purchase, X experienced a significant decline in its estimated market value.
Expert estimates mainly attributed the losses to a substantial drop in advertising revenue, with reports claiming that X’s revenue fell from $5 billion in 2021 to $2.7 billion in 2024.
In July 2024, Fidelity estimated X’s worth at approximately $9.4 billion, indicating a 79% decrease from the original purchase price.
Growth for Musk’s Companies
The recent talks mark a pushback to success for Musk, who has seen his company stock increase in recent months.
Following the presidential victory of Donald Trump, Musk’s close ally, shares in SpaceX and Tesla soared.
SpaceX’s shares are now worth over $350 billion, while Tesla stock has climbed over 42% since Trump entered the White House.
Over the past decade, these two companies have secured at least $15.4 billion in government contracts.
With Musk at the helm of the new Department of Government Efficiency, he now possesses the authority to influence which agencies receive funding and how contracts are allocated, which could steer more opportunities toward his businesses.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
