Elon Musk’s social media platform, X, formerly known as Twitter, has secured nearly $1 billion in new equity funding. This significant investment values the company at approximately $32 billion, which mirrors its worth when Musk originally acquired it in 2022.
The equity round included contributions from Musk himself, as well as from investment firms such as Darsana Capital Partners and 1789 Capital. It’s notable that 1789 Capital has previously invested in Musk’s ventures, including xAI and SpaceX.
This fundraising initiative aligns with the same enterprise value of $44 billion that was connected to Musk’s initial purchase of Twitter, even though the platform had a previous debt burden of at least $12.5 billion. Since the acquisition, X has faced significant turmoil, notably experiencing workforce reductions and a departure of advertisers concerned about content.
Musk has taken legal action against several major brands, accusing them of anti-competitive behavior by withholding advertising. Despite efforts to bring advertisers back to the platform, the return has been tentative. Some insiders suggest that Musk’s legal strategies and political influence could be influencing these decisions.
Source: Read more