X Platform Recovers to Original $44 Billion Price
Social media platform X has regained its original $44 billion valuation, matching the price CEO Elon Musk paid for the company in his controversial 2022 acquisition, according to recent financial transactions. The remarkable recovery comes after the platform’s value had plummeted by as much as 72% in recent years, with Fidelity Investments valuing it at just $10 billion as recently as September.
The $44 billion figure emerged from a secondary deal earlier this month where investors exchanged existing stakes in the company, according to Financial Times. The transaction indicates growing investor confidence in the platform’s financial trajectory despite a tumultuous period following Musk’s takeover of what was then called Twitter.
Strategic Financial Maneuvers
Beyond the secondary deal establishing the company’s renewed valuation, X is pursuing additional capital infusion. The platform is reportedly working to raise approximately $2 billion in new equity through a primary funding round, with proceeds aimed at paying off more than $1 billion in junior acquisition-related debt, as reported by The Guardian.
Musk himself appears confident in the company’s trajectory, with Bloomberg reporting that the billionaire personally spent around $150 million buying additional X shares last year at a valuation close to his original purchase price. This move came when many external valuations of the company remained significantly lower.
The platform’s financial recovery is bolstered by improved operational performance. X posted adjusted profits of $1.2 billion last year, according to the Financial Times—a dramatic improvement from Twitter’s $221 million loss in 2021, its last full year as a public company before Musk’s acquisition.
Factors Behind the Recovery
Several elements have contributed to X’s financial resurgence. Major advertisers including Disney and Apple have returned to the platform in recent months after previously pausing their spending over content moderation concerns, Yahoo Finance reported.
The company has also drastically reduced expenses under Musk’s leadership. Following the acquisition, X laid off approximately 80% of its workforce, significantly cutting operational costs. Additionally, the introduction of subscription services like X Premium has created new revenue streams beyond traditional advertising.
Musk’s increasingly close relationship with President Donald Trump has also been cited by some investors as a positive factor for the platform’s business prospects, particularly as X has positioned itself as a less restrictive environment for political discourse compared to competitors.
JUST IN: X (Twitter) is back to a $44 billion valuation. pic.twitter.com/dk4QSNR9Fd
— Watcher.Guru (@WatcherGuru) March 19, 2025
Platform Evolution
X has undergone substantial changes since Musk’s acquisition and subsequent rebranding from Twitter in summer 2023. Beyond the name change, the platform has made significant shifts in its features and policies.
The introduction of paid verification through X Premium (formerly Twitter Blue) created a new revenue stream, while the platform also rolled out Grok, its own artificial intelligence model designed to compete with other conversational AI services. These initiatives represent attempts to diversify revenue sources beyond traditional advertising.
Content moderation policies have been notably loosened under Musk’s leadership, a change that initially prompted many advertisers to pause or reduce spending on the platform. This led to a contentious relationship with the advertising industry, culminating in X filing lawsuits against several major companies and a global advertising alliance, accusing them of unlawfully conspiring to boycott the platform.
“We tried peace for 2 years, now it is war,” Musk tweeted after initiating the legal action.
BREAKING: The valuation of 𝕏 has soared back to $44 billion in sharp turnaround.
— DogeDesigner (@cb_doge) March 19, 2025
Investors valued the platform at $44 billion in a secondary deal earlier this month, in which they exchange existing stakes in the company as per Financial Times. pic.twitter.com/5ecHlRzYPT
Broader Portfolio Implications
X’s valuation recovery comes amid significant shifts in Musk’s broader business portfolio. For the first time in five years, Musk’s stake in SpaceX has surpassed his Tesla holdings as his most valuable asset, according to Forbes calculations cited by The Guardian.
While SpaceX has thrived, Tesla has faced challenges, with its stock price dropping approximately 38% since the beginning of the year. Some analysts attribute this decline partially to consumer backlash against Musk’s political positions and involvement in the Trump administration’s Department of Government Efficiency.
Reports of vandalized Tesla vehicles and attacks on Tesla stores have emerged in recent months, reflecting the polarizing nature of Musk’s public profile and its potential impact on his various business interests.
Investor Perspective
The recovered valuation represents a significant win for X’s investors, which include venture capital firms Andreessen Horowitz, Sequoia Capital, 8VC, and Goanna Capital, alongside Fidelity Investments. These stakeholders had faced paper losses when the platform’s value declined following the acquisition.
Another factor potentially bolstering investor confidence is Musk’s decision last year to give a 25% stake in his artificial intelligence startup, xAI, to institutions that provided loans for his X takeover. With xAI now valued at $45 billion, this arrangement has provided additional security to lenders, indirectly supporting X’s valuation.
As X continues its transformation under Musk’s leadership, the platform’s return to its original valuation suggests that despite controversy and significant business model changes, investors are increasingly seeing potential in its revised approach to social media.
