X, the social media platform of Elon Musk, has recovered its initial $44 billion value after experiencing a major price increase. The platform experienced a significant value recovery after Musk acquired it in October 2022.
The Financial Times reported that investors purchased X at $44 billion through a secondary market trade during this month. Fidelity Investments initially valued the platform at $10 billion in September, but investors placed its worth at $44 billion in early October. The company plans to obtain $2 billion through its primary fundraising initiative to eliminate more than $1 billion in junior debt obligations.
The purchase of Twitter by Musk became X after he took control of the platform. The platform lost many advertisers because Musk’s hands-off approach to content moderation was seen as blackmail by these companies. X filed legal actions against Unilever and Mars as well as other major companies by claiming they participated in an improper advertising boycott.
The company reported an adjusted profit of $1.2 billion despite experiencing revenue decline. The platform’s valuation received additional support from the $45 billion valuation of Musk’s artificial intelligence startup xAI. The lenders who financed Musk’s acquisition of X received a 25% ownership share in xAI as part of their financing agreement.
X has recovered from its struggles, yet Musk directs his business activities toward different directions. Tesla’s stock market value remains in decline because investors worry about Musk’s political stance together with other business elements. His SpaceX stake now represents his biggest asset since surpassing Tesla as his most valuable company for the first time in five years and is currently worth $147 billion.
Forbes has determined that Elon Musk’s wealth reaches $323 billion, making him the leading richest person on Earth despite his business ventures showing market value changes.
