Unlock the digestive of free editor
Roula Khalaf, the FT editor, chooses her favorite stories in this weekly newsletter.
Elon Musk’s X has raised about $ 1 billion in a new round of net capital financing that estimates the social media company with $ 44 billion, restoring its rating in line with the price that the billionaire paid in 2022.
Musk, the shareholder of most of the X, was among those who bought shares, according to some people familiar with the matter. Darsana Capital, an investor who bought Musk’s X Buyout -related debt, and 1789 Capital, a venture firm whose partners include Donald Trump JR and invested in other companies Musk also participated.
The fundraising, which estimates at the X with $ 44 billion including debt, comes as Musk has established close links with Donald Trump and took on a central role in the US president’s attempt to reduce the size of the Federal Government.
Shares in Tesla, the musical motorist co-founded by Musk, have recently fallen after some customers have avoided the brand, but part of its private empire have increased.
Seven banks that had kept $ 12.5 billion in their balances in loans linked to the X22 purchase of the X Musk, known as Twitter, have been able to load most of it this year, have helped by increasing the debt appetite.
Banks were left with just over $ 1 billion of new debt after recent deals.
The last increase in capital will give x money to pay small loan, some people said about the situation. It will remove one of the most expensive loans X was granted in purchase, with a person who pointed out the new capital cost the company about 13 percent per year.
Separately, Musk also bought additional actions in the company from existing investors last year. According to public registrations by Kingdom Holding Company, a Saudi conglomerate and X investor, Musk bought stock worth $ 150 million in the company.
In recent weeks, X also conducted another secondary market deal, which also estimated X with $ 44BN.
A return to the original purchase price has been a symbolic target for Musk, according to an investor in X. After taking over the group, Musk released the platform moderation policies, and many advertisers left, pushing the lowest income.
Fidelity Investments, an X supporter, in late September implies an appreciation for the company that was less than $ 10 billion.
But some groups, including Amazon, have increased marketing costs recently, as Musk’s relationship with Trump has deepened.
Company finances have also shown signs of improvement, according to investors, and X posted $ 1.2 billion in profits regulated before interest, taxes, depreciation and depreciation in 2024. This is approximately flat with the period before Musk’s receipt, although a person known to the issue noted that the figure was subject to significant adjustments.
X estimation has also increased significantly by Musk’s decision to give a 25 percent shares in its onset of artificial intelligence XAI for investors in social media company at the beginning of last year. Xai has exceeded a $ 45 billion rating since it was founded in 2023.
X refused to comment. 1789 and Darsana refused to comment.
Bloomberg first reported that the round of net funding collection was closed.
