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Elon Musk’s X collected around 1 billion USD in a new equity financing round, in which the social media company is estimated with USD 44 billion, and corresponds to the evaluation in accordance with the price that the billionaire paid in 2022.
muskThe majority shareholder of X was one of those who bought the shares for several people who were familiar with the matter. Darsana Capital, an investor who bought debts with Musk X Buyout, and 1789 Capital, a risk clipper, to whose partner Donald Trump JR and invested in other musk companies, also took part.
Fundraising, which estimates X for $ 44 billion including debts, comes, since Musk has close relationships with Donald Trump and has played a central role in the attempt by the US President to reduce the greatness of the federal government.
Shares In Tesla, the electric car manufacturer co -founded by Muschus has recently fallen because some consumers have avoided the brand but have been strengthened parts of its private empire.
Seven banks that had associated their balance sheets of $ 12.5 billion in loans in connection with Musks 2022 -Buyout from X, which was known as Twitter at the time, helped this year with the appetite.
After the latest deals, the banks held a little more than 1 billion USD in junior debt.
The latest increase in equity will give X the cash to pay the junior loan, said several people who have been informed about the situation. One of the most expensive loans will be removed with which X was saddled in Buyout, with a person noticed that the junior capital cost the company about 13 percent per year.
Regardless of this, Musk also acquired additional shares in the company from existing investors last year. According to public submissions from Kingdom Holding Company, a Saudi conglomerate and X investor, Musk bought stocks worth $ 150 million in the company.
In the past few weeks, X has also carried out another one Secondary market businesswhich also estimated X for $ 44 billion.
A return to the original purchase price was a symbolic goal for Musk, according to an investor in X. After Musk had taken over the platform’s moderation guidelines and many advertisers went and the income had lower.
The disclosures of Fidelity Investments, an X supporter, implied an assessment for the company at the end of September that was less than $ 10 billion.
Some groups, including Amazon, have recently increased marketing editions because Musk’s relationship with Trump has deepened.
According to investors, the company’s finances also showed signs of improvement, and X in 2024 achieved USD 1.2 billion in adapted results before interest, taxes, depreciation and amortization. This is about flat over time before the takeover of Musk, although a person familiar with the specified person is subject to significant adjustments.
The evaluation of X was also significantly increased by Musk’s decision to grant investors in the social media company at the beginning of last year a share of 25 percent in its start-up for artificial intelligence. Xai has jumped on an evaluation of $ 45 billion in 2023.
X rejected a statement. In 1789 and Darsana refused to comment.
Bloomberg initially reported that the donation round was closed for equity.
