Unlock the editor’s digestion for free
Rula Calaf, FT editor, chooses his favorite stories in this weekly newsletter.
X Elon Musk raised about $ 1 billion in the new round of capital financing that values the social media company for $ 44 billion, returning its estimate in accordance with the price the billionaire paid in 2022.
MuskThe majority of the Fi shareholder was among those who bought the actions, according to several people familiar with the issue. Darsana Capital, an investor who bought a long tied to “buying Musk”, and 1789 capital, investing a company whose partners include Donald Trump Runior and participated in other musk companies also participated.
Raising funds, which values X to $ 44 billion, including debt, comes when Musk has falsified close links with Donald Trump and has taken a central role in the US president’s attempt to reduce the size of the federal government.
Stock In Tesla, the electric car maker co-founder of Musk recently collapsed, as some consumers avoided the brand, but parts of its private empire have increased.
Seven banks that held their $ 12.5 billion balance in loans related to the 2022 ransom of X, then known as Twitter, were able to overload most of it this year, helped with increasing debt appetite.
Banks remained to hold just over $ 1 billion in a younger debt after recent deals.
The latest capital rise will give X cash to pay the younger loan, several people say about the institutions for the situation. Wille removed one of the most expensive loans that X was in the ransom, with one person noticing the younger capital cost the company about 13 % a year.
Separately, Musk also bought additional shares in the company from existing investors last year. According to public submissions from the Kingdom Holding Company, Saudi conglomerate and X -Investor, Musk bought $ 150m worth of stocks in the company.
In the last few weeks, X also conducted another Secondary bargain on the marketwhich also valued X for $ 44 billion.
Returning to the initial purchase price is a symbolic goal for Musk, according to an investor in H., after taking over the group, Musk has loosened the platform moderation policies and has left many advertisers, forcing revenue lower.
Fidelity investment disclosure, refunds, in late September implies an estimate of a company that was less than $ 10 billion.
But some groups, including Amazon, have recently increased marketing costs, such as Musk’s relationship with Trump.
The company’s finances also showed signs of improvement, according to investors, and X announced $ 1.2 billion in adjusted earnings ahead of interest, taxes, depreciation and depreciation in 2024. It is approximately flat with the period before taking Musk, although a person is acquainted with matter, noticed that the figure is subject to significant adjustments.
The valuation of X has also increased significantly by Musk’s decision to award 25 % of the stock in its initial artificial intelligence to the XAI investors at the social media company earlier last year. XAI climbed to a $ 45 billion estimate as it was founded in 2023.
X declined to comment. 1789 and Darsana declined to comment.
Bloomberg first announced that the capital funding round was closed.
Source link
