- Elon Musk’s social media platform, X, secures new equity funding, maintaining a valuation of approximately $32 billion
- Musk personally participated in the funding round, alongside investors like Darsana Capital Partners and 1789 Capital
- The funding comes shortly after X suffered a major cyberattack
Elon Musk’s social media platform, X (formerly Twitter), has secured nearly $1 billion in new equity funding from investors, keeping its valuation close to what it was when Musk took the company private in 2022.
According to Bloomberg, which cited sources familiar with the matter, the deal values X’s equity at approximately $32 billion.
This aligns with the valuation at the time of Musk’s $44 billion acquisition of Twitter, which included at least $12.5 billion in debt.
The latest fundraising suggests that X’s enterprise value remains around that same level.
Key investors and Musk’s involvement
Musk himself participated in the funding round alongside key investors, including Darsana Capital Partners, which had previously acquired some of X’s debt earlier this year.
Another notable investor in this round is 1789 Capital, a firm that has also backed Musk’s ventures like xAI and SpaceX.
Sources indicate that X may use part of the newly raised capital to reduce its outstanding debt, a strategic move that could help stabilise the company’s financial position.
Challenges facing X: Cybersecurity and advertiser exodus
The funding development comes just weeks after X suffered a major cyberattack that disrupted the platform’s services.
Musk acknowledged the attack in a post last Monday, March 10, describing it as "massive" and suggesting that it was still ongoing.
This isn't the first time Musk has blamed a cyberattack for service disruptions; last year, he claimed an attack was responsible for an outage that coincided with a scheduled interview featuring Donald Trump.
Since Musk’s takeover and subsequent rebranding of Twitter as X, the platform has faced significant turbulence.
Workforce reductions, policy shifts, and a mass exodus of advertisers have contributed to financial instability.
Many brands halted their ad spending over concerns about their advertisements appearing alongside controversial content.
To counteract these losses, Musk has taken legal action against major brands, accusing them of engaging in anti-competitive behaviour by withholding advertising funds.
While some advertisers have resumed spending, industry analysts suggest that Musk’s legal threats, as well as his increasing influence in political discussions, may be shaping corporate decisions.
Musk’s broader financial moves
Beyond X, Musk has been actively raising funds for his other ventures. SpaceX recently completed a tender offer valuing the company at around $350 billion, while xAI is reportedly seeking fresh funding at a valuation of $75 billion.
His reliance on private markets to secure funding highlights his strategy of leveraging investor support to sustain and expand his business empire.
Elon Musk’s xAI secures $6 billion in Series B funding
Meanwhile, TheRadar earlier reported that Elon Musk's artificial intelligence company, xAI, announced the successful conclusion of its Series B funding round, raising an impressive $6 billion.
In a statement on its blog, xAI disclosed that the funding round attracted prominent investors, including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding.