Musk’s X reportedly in funding talks at $44B valuation—the price he paid for Twitter

Elon Musk’s social media company, X, is in discussions to raise new funding at a $44 billion valuation—the same price Musk paid when acquiring the platform, formerly known as Twitter, in 2022, as per a Bloomberg report.

If successful, the funding round would mark a turnaround for X after Musk’s overhaul led to an exodus of users and advertisers.

Prior to these talks, Fidelity Investments had written down its stake in the company by about 70% from the acquisition price.

The discussions remain ongoing, and details could change, the report said citing sources.

X could also choose to abandon the financing round altogether. This would be the first known investment round for the company since Musk took it private.

Musk's recent success

Musk’s companies have seen a resurgence in recent months.

Tesla shares have risen over 40% since President Donald Trump’s election, while SpaceX reached a $350 billion valuation in December, making it the world’s most valuable startup.

Musk has also been actively raising funds across his ventures. His artificial intelligence startup, xAI, is reportedly seeking new investment at a valuation of around $75 billion. X holds a roughly $6 billion stake in xAI.

Additionally, X’s debt has seen a revaluation. Morgan Stanley recently arranged the sale of $3 billion in X debt at face value, indicating strong investor demand.

This marks a shift from earlier attempts to sell the debt, which faced investor reluctance.

Investor sentiment toward X has shifted alongside Musk’s growing influence in the Trump administration, with some betting that his role will benefit his businesses.

Backers of Musk’s original Twitter acquisition include Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority.

X's troubles with advertisers

Earlier this month, Elon Musk's X expanded its lawsuit against major advertisers, alleging they conspired to boycott advertising on the platform following his takeover.

In an amended complaint filed in a Texas court on Saturday, X added Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell to the lawsuit originally filed in August.

The complaint claims that members of the now-defunct Global Alliance for Responsible Media (GARM), a former initiative of the World Federation of Advertisers (WFA), illegally coordinated to withhold billions of dollars in ad revenue from X.

Other defendants include the WFA, CVS Health, Mars, and Twitch.

X alleges that at least 18 GARM members stopped advertising on the platform between November and December 2022, shortly after Musk completed his $44 billion acquisition of Twitter.

The lawsuit argues that this boycott weakened X’s ability to compete in the digital advertising space and attract user engagement.

However, some advertisers have been changing their approach to the social media platform.

Apple has reportedly started advertising on the platform again. Amazon is also said to be in discussion to raise its ad spending on the social media platform.