Its valuation reaches 44,000 million dollars

The social network X, before as known to X, has risen economically. As indicated In Financial Timesthe valuation has been recovered and is now at 44,000 million dollars, which is just the amount that Elon Musk paid to buy it. How have you gone around the tortilla? Let’s see it.

Twitter collapse. In October 2022 Elon Musk bought Twitter for 44,000 million dollars. After a series of controversial decisions and the unbalanced of the advertisersits valuation collapsed: a year later the company had lost 90% of its value. Things painted very badly for the social network now known as X, but the truth is that the tycoon has managed to turn the situation, at least in the economic section.

Not even 10,000 million dollars were worth. X investors have exchanged their respective positions in the company, according to sources close to those movements. This process has served to estimate the remarkable increase in valuation for a company that had it below 10,000 million dollars.

INVESTMENT ROUND IN THE VIEW. X is negotiating to raise a first investment round. It is estimated that they could raise about 2,000 million dollars, of which 1 billion would serve to pay part of the debts that Musk assumed to make the purchase.

The cuts work. The income has fallen since the arrival of Musk and in 2024 they were approximately Half of those that were before the acquisition. However, it seems that the important cuts he made – for example with the numerous dismissals – have helped to turn X into a more efficient and economically efficient company, and the costs are now a quarter of those in the past. Its EBITDA is 1.2 billion dollars according to two sources close to that situation, and the striking thing is that the figure is practically identical to which Twitter had before Musk bought it.

Banks sell their debt. Several banks that lent money to Musk have sold almost the total Of the 12,500 million dollars of debt that were pending with the tycoon. Meanwhile, capital investors – who have a participation in the company – valued the company well below the value in the past, which has probably caused losses.

Trump and Xai help. The re -election of Donald Trump as president of the United States has notably favored Elon Musk, who supported his campaign and has now become his main advisor in many areas. That has helped the recovery of X, partly because there has been a Partial return of advertisers.

And XAI as lever. Another of the elements that has favored the recovery has been the movement that Musk made a few months ago. The tycoon gave X investors 25% participation in XAI. This startup already has an assessment of 45,000 million dollars, and that has certainly been a convincing argument to be happy for those investors.

Subscriptions and Grok. The increasing relevance of the subscription model in X is another of the elements that have allowed increasing income. In these subscription plans, the AI ​​of XAI, Grok, which has become part of the supply offer develops a leading role, although it is also available in a limited way for those who use X free of charge.

Optimism. Musk He joked In X in February before the good news saying that “it is almost as if it were good with money”, but also highlighted that there was a margin of improvement and that income should quickly improve in 2025 “as the advertising boycott is blurred.”

Image | POT

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