Elon Musk’s X raises almost $1 billion in new equity funding

Elon Musk’s social network X has raised near $1 billion in new fairness from traders in a deal that values the corporate at roughly $32 billion, in accordance with folks with data of the matter — a valuation in keeping with when Musk took it personal in 2022.

Musk himself participated within the fairness increase, mentioned a few of the folks, all of whom requested to not be recognized discussing personal data. The corporate is contemplating utilizing a few of the proceeds to pay down its remaining debt load, one of many folks mentioned.

Darsana Capital Partners, which purchased a few of X’s debt earlier this yr, additionally participated within the fairness spherical, a few of the folks mentioned.

A consultant for X didn’t reply to a request for remark. A consultant for Darsana declined to remark.

After Musk purchased Twitter and renamed it X, the corporate underwent a tumultuous interval — marked by deep cuts and advertiser departures. At one level, Fidelity Investments had marked its stake in X down 79% in comparison with when Musk acquired it.

The Twitter buyout was a roughly $44 billion transaction, together with at the very least $12.5 billion in debt.

Musk commonly turns to the personal markets for backing for a number of of his firms, together with SpaceX, which accomplished a young provide valuing the startup at about $350 billion, and xAI, which is claimed to have canvassed traders about elevating recent funding at a valuation of $75 billion.