Elon Musk’s X raises $1B in equity funding at $32B valuation: Report
According to the sources cited in the report, Musk himself participated in the funding round, as the company is reportedly considering using part of the proceeds to reduce its outstanding debt.
Social media platform X (Formerly Twitter) has raised close to $1 billion in new equity funding, valuing the company at approximately $32 billion, said a report by Bloomberg.
According to the sources cited in the report, Musk himself participated in the funding round, as the company is reportedly considering using part of the proceeds to reduce its outstanding debt.
Darsana Capital Partners, which previously acquired some of the firm’s debt, also took part in the equity raise, the report added.
Musk acquired Twitter on October 27, 2022, and took over as CEO, replacing Parag Agrawal. He also dismissed several top executives, including former chief legal officer Vijaya Gadde.
Following its rebranding to X, the platform has undergone significant workforce reductions, along with a decline in advertiser spending.
In September, Fidelity Investments, the asset manager that helped Musk acquire the platform, reduced the valuation of its stake in X by 79% compared to its worth at the time of Musk’s acquisition. The firm is currently backed by (a16z), Sequoia Capital, 8VC, and Goanna Capital, among other investors.
However, Financial Times reported that X's valuation has rebounded to $44 billion, matching its valuation at the time of Musk’s acquisition three years ago.
In addition, Abu Dhabi’s MGX, Microsoft, and BlackRock announced that Elon Musk’s xAI is joining their $30 billion initiative to develop data centers and AI infrastructure.
Nvidia, initially named as a technical adviser when the group was launched last year, is also formally joining, according to a statement on Wednesday.
Edited by Megha Reddy