X raises US$2b to cut debt as valuation recovers, says FT
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The news: X is working to raise USD2 billion ($3.2 billion) in fresh capital through a primary funding round to pay off more than USD1 billion in junior debt, according to the Financial Times.
It comes as X was earlier this month valued at USD44 billion in a secondary deal where investors exchanged existing stakes, the paper said, marking a sharp turnaround from Fidelity Investments’ September valuation of below USD10 billion.
Investors include Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital, and Fidelity, the paper said.
While X’s revenues have declined since Musk’s takeover, the platform posted flat adjusted EBITDA of about USD1.2 billion in 2024, two sources told the paper.
The context: Last month, sources told Bloomberg and Reuters X was in talks to raise money at the same valuation Musk had paid for the company, formerly Twitter in 2022.
Bloomberg, however, reports a lower valuation, which appears to exclude debt. It states that X has raised close to USD1 billion in new equity from investors, including Musk himself, valuing the company at roughly USD32 billion—described as being in line with its 2022 private buyout valuation.
The Twitter buyout was a USD44 billion transaction, including at least USD12.5 billion in debt, Bloomberg noted.
The sources: Financial Times , Bloomberg
