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Subscribe25 MAR 2025 / FINANCE
If you thought the drama around Elon Musk’s X (you know, Twitter with a glow-up) was cooling off, think again. Just when financial experts were still arguing over whether the 2022 $44 billion buyout was worth the headache, Musk and crew have pulled off another eyebrow-raiser, nearly $1 billion in fresh equity funding. The kicker? This funding pegs X’s valuation right back at $44 billion, the exact price tag Musk struck on it when he took the bird app private nearly three years ago. Some say it’s a comeback; others call it stubborn optimism. Either way, Musk is back at it, and this time, he’s not just tweeting about Dogecoin. So, who’s cutting checks? What’s Musk planning now? And does this mean X is finally turning a corner? Let’s break it down.
The recent equity round closed around mid-March 2025 and involved some big wallet energy. Musk himself ponied up some dough, staying in the loop with skin in it. Notable players like Darsana Capital Partners (a hedge fund with over $10B in AUM) and 1789 Capital (yep, the one tied to Donald Trump Jr.) also joined the round. Fun fact: Darsana wasn’t new to the party; they’d already picked up some of X’s debt earlier this year. And 1789? These guys have previously bet on SpaceX and xAI, which gives you a sense of their appetite for Musk-flavored moonshots.
The total valuation includes debt, which makes up a chunky $12.5 billion, mostly leftovers from the 2022 deal. The fundraising appears to target two priorities:
Yup. That’s where it gets wild.
You read that right. Musk isn’t just playing social media tycoon anymore, he’s hell-bent on turning X into an “everything app,” a concept he’s long admired from China’s WeChat.
The cash infusion is expected to go into:
Word on the street is that he wants creators to use X for full-length videos, live content, and monetization tools. That’s a hard left turn from 280-character tweets and cat memes, but hey, Elon’s never been shy about breaking the mold. And yes, advertisers are starting to come back (Amazon's reportedly upping its spend). But don’t think it’s all smooth sailing.
X has had more plot twists than a daytime soap opera. Since Musk's takeover, the company has:
And don’t forget cyberattacks. Just two weeks ago, Musk claimed there was (and still might be) a “massive cyberattack” on the platform. That came after service outages and user complaints. Musk had previously blamed a cyber hit for a site crash during a Trump interview (although let’s be honest, the proof was thin on that one).
X has butted heads with EU regulators over content moderation obligations under the Digital Services Act. Meanwhile, in the U.S., political heat is building around Musk’s growing influence—including his proximity to Donald Trump and reportedly taking center stage in his push to downsize the federal government. While X hasn’t been formally penalized for anything major (yet), watchdogs are circling like sharks at a pool party.
If you’re a CFO, investment advisor, or tax whiz wondering whether this is just another Elon sideshow or a serious play, here’s what matters:
That said, questions remain:
Only time (and maybe one or two more funding rounds) will tell.
Musk’s latest move with X isn’t just about debt paydown or product expansion, it’s a reset, a reputational play, and a bet that users, investors, and advertisers are ready to give X another chance. Whether that bet pay off? Well, don’t touch that dial. “In the business world, the rearview mirror is always clearer than the windshield.” – Warren Buffett Let’s hope Elon keeps at least one eye on both. Want more scoop on keeping your books bulletproof? Subscribe to our newsletter or follow us for the latest trends.
Until next time…
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