These funds will be used to pay down X’s remaining debt, and they value the social media platform at roughly USD 32 billion. The Twitter buyout included approximately USD 12.5 billion in debt, which means that the current fundraiser was completed at roughly the same enterprise value as Musk’s initial purchase, USD 44 billion.
After Twitter was bought and renamed X, the company underwent a difficult period marked by advertiser departures. X’s advertising business plummeted after the acquisition, as marketers fled the service or paused their spending over concerns that their messages might appear alongside inappropriate content. Musk fought marketers in court to try to bring them back. X is suing several brands for withholding advertising spending, alleging that their decision amounts to anti-competitive behaviour.
Following this, some marketers started to return. However, industry insiders suggest that their return is allegedly driven solely by legal threats or by pressure stemming from Musk’s position within the Trump administration.
X’s business rebounded since President Donald Trump was re-elected, though Fidelity Investments, an X investor, marked down its stake in the company by 68% as of January. In addition to some advertisers returning, bankers recently sold X debt that they held for years after Musk’s initial purchase.
Elon Musk also turned to private markets for funding for SpaceX, which completed an offer valuing the startup at USD 350 billion, and xAI, which raised funding at a valuation of USD 75 billion. However, shares of his automaker Tesla Inc. lowered by over 40% in Q1 2025. This is in part because of heightened competition, as Tesla’s sales plummeted by 5.3% following news that Chinese automaker BYD Co. offers an electric car that could be charged as quickly as a gas vehicle is refuelled.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now