The X platform has begun negotiations with potential investors to conduct a new investment round at a valuation of $44 billion. This amount is the same as what Elon Musk paid in 2022 to acquire the social media platform, which was then known as Twitter. Over the past three years, X has operated as a private company and has not conducted any investment rounds or received additional financing since Elon Musk took over.
Elon Musk took on a significant amount of debt to acquire X, and these financial obligations continue to impact the company's finances. As a result, in the initial phase, Musk reduced costs by laying off 80% of the workforce, which amounted to 7,500 employees.
The reduction in staff led to moderation issues. Alongside Musk's controversial statements, many advertisers decided to sever their ties with X and shifted to alternative platforms. Although X later took the advertisers' boycott to court, it failed to achieve stable growth. The platform experienced a significant decline in advertising revenue and sought a solution by introducing subscription plans. Additionally, new features such as payment system integration and job posting capabilities were added to X.
During this period, Elon Musk has been working to strengthen the platform’s political influence by building close relationships with conservative investors and prominent figures in the U.S. business world.
If the investment round is successfully completed, X is expected to improve its market perception and strengthen its financial sustainability. However, the negotiations are still in the early stages, and there is a possibility that the investment plans may change.
