After a secondary deal carried out earlier this month, X was valued at $44 billion, as reported by the Financial Times. The valuation had fallen since its purchase and Fidelity marked the value down by 72% as of December, reported Benzinga.
How Elon Musk Navigated the Revival
One of the major drivers of the recovery in X’s valuation is the return of top advertisers, as per the report. Market leaders such as Apple and Amazon have started to spend on the platform again, supporting revenue recovery after a drop, according to Benzinga.
Aside from enticing advertisers, Musk has also concentrated on reorganizing the company’s finances. This month, the Financial Times’ report disclosed that X might raise as much as $2 billion in a primary round of funding to pay off some of the company’s debt.
The social media platform had raised around $1 billion in new equity from investors including Musk, reported Bloomberg. As per the report, Darsana Capital Partners participated in the equity round, it had recently also bought some of X’s debt.
The Role of xAI and X Money
Another important aspect of X’s turnaround is the firm’s foray into artificial intelligence, according to Benzinga. The social media had invested in AI company xAI, as per the report. While, Musk has also offered a 25% stake in xAI to investors who had backed his Twitter takeover, reported Benzinga. X is also set to move into digital payments with the introduction of X Money, a digital wallet and peer-to-peer payment system, according to the report. This fits into Musk’s overall plan for X to become an “everything app,” as per Benzinga. Visa Inc., a top payment processor globally, has already come on board as the first partner for X Money, added the report.
FAQs
Why is X formerly known as Twitter?
X is Elon Musk’s social media platform, which was previously Twitter before being rebranded.
What is X Money?
X Money is X’s new digital wallet and peer-to-peer payment system, aiming to make X an “everything app.”
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