19.03.2025, 14:20
Social network X was valued at $44 billion as part of the sale of existing shares
Source: OREANDA-NEWS
OREANDA-NEWS Investors valued the American social network X (formerly Twitter) at $44 billion as part of the sale of existing shares earlier this month, the Financial Times writes, citing sources.
The company's investors include Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital and Fidelity Investments. It is not specified whether any of them sold the papers.
X is also working to raise about $2 billion through the sale of new shares. These funds are planned to be used to repay the junior debt of more than $ 1 billion, which Elon Musk raised to buy Twitter in 2022 for $44 billion.
The sale of new shares will help X "clear the last debts," said a source in banking circles close to the investround organization.
Morgan Stanley, Bank of America, Barclays, MUFG and three other banks in January-February sold loans for more than $11 billion of the $12.5 billion raised by the billionaire and, according to FT sources, agreed to give X time to raise new equity or similar financing to repay the remaining junior debt.
Investors' interest in these loans increased after Donald Trump's victory in the US presidential election in November. Musk is a close associate of Trump and the head of the country's Department of Government Efficiency (DOGE).
The interest was also reinforced by the fact that Musk gave investors X a 25% stake in his AI startup xAI, which is valued at $45 billion, at the beginning of last year. The deal increased the value of the social network and provided additional collateral to its creditors.
In addition, sources familiar with X's finances in the British edition note an increase in the company's revenue and signs of the effectiveness of Musk's cost-cutting plan. Another source says that the company's EBITDA is "wildly adjusted."
According to sources, in 2024, the adjusted EBITDA of the social network amounted to about $ 1.2 billion, approximately at the level of the period preceding its purchase by Musk. Revenue has decreased since the takeover, writes FT.
At the end of last year, Fidelity Investments, which was also involved in the 2022 deal, wrote off the value of its investment in X by about 70% of the original purchase price.
The company's investors include Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital and Fidelity Investments. It is not specified whether any of them sold the papers.
X is also working to raise about $2 billion through the sale of new shares. These funds are planned to be used to repay the junior debt of more than $ 1 billion, which Elon Musk raised to buy Twitter in 2022 for $44 billion.
The sale of new shares will help X "clear the last debts," said a source in banking circles close to the investround organization.
Morgan Stanley, Bank of America, Barclays, MUFG and three other banks in January-February sold loans for more than $11 billion of the $12.5 billion raised by the billionaire and, according to FT sources, agreed to give X time to raise new equity or similar financing to repay the remaining junior debt.
Investors' interest in these loans increased after Donald Trump's victory in the US presidential election in November. Musk is a close associate of Trump and the head of the country's Department of Government Efficiency (DOGE).
The interest was also reinforced by the fact that Musk gave investors X a 25% stake in his AI startup xAI, which is valued at $45 billion, at the beginning of last year. The deal increased the value of the social network and provided additional collateral to its creditors.
In addition, sources familiar with X's finances in the British edition note an increase in the company's revenue and signs of the effectiveness of Musk's cost-cutting plan. Another source says that the company's EBITDA is "wildly adjusted."
According to sources, in 2024, the adjusted EBITDA of the social network amounted to about $ 1.2 billion, approximately at the level of the period preceding its purchase by Musk. Revenue has decreased since the takeover, writes FT.
At the end of last year, Fidelity Investments, which was also involved in the 2022 deal, wrote off the value of its investment in X by about 70% of the original purchase price.
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