According to informed sources, Elon Musk’s social network Google X has raised nearly $1 billion in new equity from investors. This deal has valued the company at the same level as when Musk took it private in 2022.
Some unnamed insiders said that Musk himself also participated in this equity financing. One of the insiders said that the company is considering using part of the funds raised to repay the remaining debts.
The deal values X’s equity at approximately $32 billion. Twitter’s acquisition includes at least $12.5 billion in debt, meaning the enterprise value at the time of the latest financing is roughly the same as Musk’s initial offer, at $44 billion.
Some insiders said that Darsana Capital Partners, which bought a portion of X’s debt earlier this year, participated in this equity financing. Insiders also revealed that 1789 Capital, an investment firm that backs both xAI and SpaceX, was also involved in this round of financing.
Musk frequently turns to private markets for support for his multiple companies, including SpaceX (which has completed an offer that values the startup at around $350 billion) and xAI (which is said to have lobbied investors to raise new funds at a valuation of $75 billion).
While Musk’s company has been rising in the private equity market, the share price of his carmaker Tesla has dropped by more than 40% so far this year. Part of the reason is that his political reputation has made some consumers turn against his cars. Intensified competition has also put pressure on the share price. On Tuesday, Tesla’s share price fell by 5.3% after it was reported that Chinese automaker BYD had launched an electric vehicle with a charging speed as fast as refueling a gasoline car.
After Musk’s acquisition of Twitter and its subsequent renaming to X, the company went through a tumultuous period marked by layoffs and the departure of advertisers. Shortly after the acquisition, X’s advertising business was severely hit as many marketers were concerned that their messages might appear alongside inappropriate content, leading them to either withdraw from the service or suspend their spending.
Since then, Musk has been fighting in court with marketers to get them back. X has sued several major brands, accusing them of withholding advertising spending and claiming their decisions are anti-competitive.
According to Bloomberg, some marketers have begun to return, but industry insiders believe that Musk’s threat of legal action may be the reason for their decisions. Musk’s powerful position in the Trump administration is also one of the reasons why some marketers are worried about angering the billionaire.
Since President Donald Trump’s re-election, X’s business has rebounded, although Fidelity Investments, an X investor, had reduced its stake in the company by 68% by January. Besides the return of some advertisers, bankers have recently sold X debt they had held for years after Musk’s initial purchase.
