Investing.com-- Elon Musk’s social media platform X is in talks to raise money at a $44 billion valuation, Bloomberg reported on Wednesday, citing people familiar with the matter.
The $44 billion valuation is the original price paid by Musk for Twitter in 2022, with the potential funding round marking a major turnaround for the social media company.
X was seen dropping sharply in valuation since Musk’s takeover and rebranding, as it grappled with an advertiser rout. Musk had fired a bulk of Twitter’s staff, including its moderation team, much to the chagrin of advertisers.
Fidelity said in December that X was worth $12.3 billion.
But recent reports showed that investors were once again warming up to X, especially as user activity surged in the wake of the 2024 U.S. Presidential election. Musk also flagged an improvement in the company’s finances.
The X CEO’s increasing influence in the White House has also drawn investors to the platform, given that it could herald more friendly government policies, or even official tenders.
Reports last week showed a consortium of Wall Street banks, led by Morgan Stanley (NYSE:MS), which had provided Musk with debt for the Twitter deal, sold a hefty chunk of associated debt- about $13 billion- earlier this month.
Major advertisers- including Amazon.com (NASDAQ:AMZN) and Apple Inc (NASDAQ:AAPL)- were also seen returning to X in recent weeks.