Bloomberg reports that Elon Musk is currently negotiating to receive additional funding for the social media platform, X, with the exact amount of money needed undisclosed. However, it is mentioned that this additional capital would value X’s business at $44 billion, equivalent to when Musk purchased Twitter in 2022.
If this deal does materialize, it could signify a significant game change. In the past, investors in X/Twitter with Musk saw the value of their holdings decrease. For instance, reports indicate that financial institutions like Fidelity reduced the value by up to 70% within a year. Additionally, there are rumors that financial institutions that provided loans to Musk are selling off debt to other investors at a discount to ease financial burdens.
A previous report from The Wall Street Journal stated that Musk had informed employees that X is not yet close to profitability, despite advertisers who were previously banned beginning to return.
TLDR: Elon Musk is in talks to secure more funding for social media platform X, potentially reshaping the landscape of the industry. Financial challenges and value fluctuations in past deals raise concerns amidst ongoing developments.
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