X is in discussions with investors to secure funding at a valuation of $44 billion, the same amount that Elon Musk paid to acquire the social media platform in 2022. The move comes as the company continues its efforts to stabilize operations and attract advertisers back to its platform. Amid shifting business strategies, X is also working on financial tools to expand beyond social media.
In earlier reports, X faced substantial challenges following Musk’s takeover, including the departure of major advertisers due to content moderation concerns. However, more recent developments indicate that some advertisers are reconsidering their stance, with companies like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) reportedly exploring increased ad spending on the platform. This represents a shift from prior struggles when advertising revenue declined significantly.
What drives the new funding effort?
X’s latest funding discussions follow reports that major financial institutions, including Bank of America, Barclays, and Morgan Stanley, were considering selling up to $3 billion in debt holdings tied to the platform. The company is looking to raise funds to support its evolving business model and maintain investor confidence amidst ongoing transformations.
How is X adjusting to market shifts?
To address advertiser concerns, X CEO Linda Yaccarino previously stated that the company had implemented new content moderation tools designed to prevent ads from appearing alongside certain types of content. She noted that in a 12-week period, 1,500 advertisers returned to the platform, including 90% of X’s top 100 advertisers.
Additionally, X has been working on expanding its financial services. Last month, the company announced a partnership with Visa to integrate Visa Direct into its X Money wallets, allowing users to move funds between bank accounts and debit cards. This initiative highlights X’s ambition to become a multi-functional platform beyond social media.
X’s efforts to secure funding at its original acquisition valuation suggest confidence in its long-term strategies despite prior setbacks. The company continues to navigate challenges related to content management and advertiser retention while also expanding into financial technology. If successful in attracting investment, X could further develop its role as an integrated social and financial platform.
