Also with investors: short message service X worth 44 billion US dollars again
After the value of X continued to fall under the leadership of Elon Musk, the tide has turned with the US election. Investors now see it that way too.
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The short message service X has now been valued again by investors at a total of 44 billion US dollars, the same amount that Elon Musk paid for Twitter. This was reported by the Financial Times, citing a financing round earlier this month. There, shares in the company were exchanged at prices that assume this total value. Just a month ago, it was reported that X itself assumed that the service was worth 44 billion US dollars again, but had to point to business figures that did not meet the standards of most large companies.
Unconventional business figures
As the British newspaper now writes, citing insiders, X would also state internally that it made a pre-tax profit of 1.2 billion US dollars last year – roughly the same as Twitter before the takeover. A few weeks ago, Bloomberg reported that X generated revenue in 2024 that was only half as high as in the last year before the takeover. Both could indicate that Musk's rigid cost-cutting measures are bearing fruit. However, the Financial Times now also refers to a source that speaks of “heavily adjusted” business figures. It is therefore not clear how X is actually doing financially.
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Musk bought Twitter in the fall of 2022 and then radically restructured it. Various waves of user churn apparently did not cause lasting damage to the service, but the total value of the company, which is no longer listed on the stock exchange, fell continuously. This only changed with the re-election of Donald Trump as US President, with Musk making a name for himself as one of his closest confidants. And while this support, the display of a Hitler salute, election advertising for the AfD in Germany and mass redundancies at US authorities for which he is responsible are becoming a problem for Musk's electric car company Tesla, things look very different for X.
It only became known in mid-February that the banks that helped finance Elon Musk's takeover of Twitter had sold the majority of their loans and only had to accept minimal discounts. This was preceded by a significant turnaround, as the loans were only worth 60 percent meanwhile. Even two months earlier, they could only have been sold at a loss of 10 to 20 percent. The Financial Times also points out that companies such as Amazon are now spending more on advertising on X again. At the same time, Musk is taking even more aggressive action against those advertising customers who had turned their backs on X in the meantime.
(mho)
