Elon Musk’s social media platform, X, has secured nearly $1 billion in new equity funding, maintaining a valuation of $32 billion, the same as when Musk took the company private in 2022. The funding event, announced on March 19, 2025, illustrates a remarkable shift in fortunes for the platform that had once been marred by significant financial losses and advertiser jitters.
Musk himself participated in this funding round alongside Darsana Capital Partners, which had previously acquired portions of X’s debt. This recent influx of capital could be crucial for X, as the company considers deploying part of the proceeds to address its remaining debt burden, which includes at least $12.5 billion tied to the original $44 billion buyout of Twitter, now rebranded as X.
Since Musk’s acquisition, the fortunes of X appear to have fluctuated dramatically. Initially, following the buyout, the platform saw advertisers flee, leading to a drastic decline in its valuation. An evaluation by Fidelity Investments even found that X’s worth had plummeted by 79% from the acquisition price. However, recent reports indicate a recovery, suggesting that investors might now consider the platform's value to be akin to Musk's original assessment.
As recently as March 2025, some investors have reportedly reinstated X’s value to $44 billion. While it remains unclear if this is due to tangible growth in the company’s operations or merely a reflection of the enduring faith in Musk’s broader business strategies, various dynamics in the advertising landscape hint at a potential rebound.
Despite turbulent circumstances, certain high-profile users continue to flock to X, while competitors such as Bluesky, Meta's Threads, and Donald Trump's Truth Social have struggled to match Twitter's cultural and political relevance. “Lots of high-profile people have left Twitter, but plenty of high-profile people still use Twitter,” one analyst noted, highlighting the platform’s ongoing influence.
The recovery narrative is further buoyed by returning advertisers who may believe that the current U.S. political landscape renders it beneficial to invest in X. But while some data points to an upward trend, it appears that many brands are cautiously re-entering the fray, focusing more on risk management than capitalizing on growth potential. Advertising executives describe brands' return to X as “playing defense,” indicating they may be more concerned about avoiding legal and political complications than fully embracing the platform.
Central to this recovery narrative is X's financial performance following Musk's takeover. In a pivotal finding reported by Bloomberg and the Financial Times, X showcased an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $1.2 billion in 2024—comparable to pre-Musk performances. While a figure that robust might suggest a positive trajectory, critics caution that these numbers may be “wildly adjusted.” Observers noted the showings included a significant list of adjustments that paint a more favorable picture than reality and worry how much the fluctuations resonate with actual business health.
As of now, a representative from X declined to comment on the financial adjustments or the authenticity of the reported figures. The opaque financial situation complicates how the general public and investors perceive the platform's viability and sustainability moving forward.
In addition to its platform, X owns a lucrative $6 billion stake in xAI, Musk's artificial intelligence venture. The AI market's rapid evolution and potential for growth have made this stake enticing for current and future investors. Amid rising excitement for AI-related advancements, having this asset within its portfolio adds a compelling layer to X’s perceived future growth.
While the investment dynamics surrounding the social media firm may look promising on the surface, the convoluted relationship between its valuation, operational realities, and how much credibility investors place in Musk lingers in the background. Many current investors are reportedly more interested in maintaining ties with Musk compared to understanding X's intrinsic business value. Just as another observer pointed out, “Lots of the people associated with Musk's Twitter deal don't really care what happens to Twitter. They simply want to be in business with Elon Musk.”
This narrative poses questions about the future of X and the broader implications of its financial decisions. As advertisers trickle back and Musk continues to command presence in the tech and political landscapes, assessment remains poised amidst uncertainty. The path forward for X may depend less on concrete operational success and more on the perceived value of being part of Musk's enterprise—a gamble investors seem willing to make, despite their concerns.
Although investors are cautiously eyeing X's trajectory, the underlying dynamics present a blend of confidence in Musk’s visionary outlook and skepticism about the company's fundamentals. As it stands, X is in a position where its survival hinges on the delicate balance between brand perception and tangible results while navigating a market that increasingly leans towards personal conviction in leadership rather than financial transparency.
