Elon Musk’s social media platform, X, has secured nearly US$1 billion in fresh equity from investors, maintaining a valuation consistent with when Musk took the company private in 2022.
Musk personally participated in the fundraising, according to sources familiar with the matter, Bloomberg reported.
Some of the funds may be used to reduce X’s outstanding debt, one of the sources said.
The deal values X’s equity at approximately US$32 billion.
The original Twitter buyout involved at least US$12.5 billion in debt, meaning this latest funding round maintains the company’s overall enterprise value at around US$44 billion – the same as Musk’s initial acquisition.
Darsana Capital Partners, which acquired some of X’s debt earlier this year, took part in the equity raise, according to sources.
Investment firm 1789 Capital, which has previously backed Musk’s ventures xAI and SpaceX, also participated.
Representatives for X, Darsana, and 1789 declined to comment.
Musk frequently turns to private markets to raise capital for his businesses.
SpaceX recently completed a tender offer valuing the company at around US$350 billion, while xAI has reportedly sought fresh investment at a valuation of US$75 billion.
While Musk’s ventures continue to attract private investment, shares of his electric vehicle company, Tesla Inc., have plummeted by over 40% this year.
The decline has been attributed in part to Musk’s growing political profile, which has alienated some consumers, as well as intensifying competition in the EV market.
Tesla’s stock fell 5.3% on Tuesday following news that Chinese automaker BYD Co. had launched an electric car capable of charging as quickly as refuelling a petrol vehicle.
Since Musk’s acquisition of Twitter and its rebranding to X, the company has experienced a turbulent period, marked by significant staff reductions and advertiser withdrawals.
X’s advertising business suffered as marketers either left the platform or paused spending over concerns that their ads might appear alongside unsuitable content.
In response, Musk has taken legal action against several major brands, accusing them of anti-competitive behaviour for withholding advertising funds.
Some advertisers have since resumed spending on the platform, though industry insiders suggest this may be due to the threat of litigation.
Musk’s close ties to the Trump administration have also influenced marketers’ decisions, with some wary of falling out of favour with the billionaire.
X’s business has rebounded since Donald Trump’s re-election, with some advertisers returning. However, Fidelity Investments, an X investor, had marked down its stake in the company by 68% as of January.
Meanwhile, bankers recently offloaded X’s debt, which they had held onto since Musk’s acquisition.
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