X’s financial outlook appears to be steadily improving as recent high-yield fund managers‘ interest in the company’s debt soared. Adding to the momentum, Elon Musk announced earlier this month that the advertiser boycott has unraveled—a major development that could significantly boost the company’s revenue in the coming quarters.
Revenue should improve rapidly this year, as the advertising boycott winds down
Now, Bloomberg reports that X is preparing to raise money from investors at a $44 billion valuation—the same as when Musk acquired the company in 2022. This would mark X’s first investment round since Musk took it private that year. Neither X nor Musk has confirmed the report’s legitimacy.
The investment round would mark a significant turnaround for X, which has been battered by collapsing ad revenue after NGOs and corporate media waged war on the ‘free speech’ platform. X’s recovery represents the emergence of new media that will dominate the conversation through President Trump’s second term, hence why investor demand is returning.
Bloomberg noted that late last year, Fidelity Investments marked down its X stake by more than 70% from the 2022 sale price.
However, in a recent interview with Tucker Carlson, Prince Alwaleed bin Talal, a major X investor, stated: “We never devalued it [X]. Some entities did devalue it by 30, 40, even 50%. But now, after the election, with President Trump and the strong alliance between Musk and Trump, we’ve seen the market revalue X dramatically—at least to its par value of $44 billion.” […]
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