The ongoing negotiations for X's new financing round aim to secure funding at the same $44 billion valuation as Musk's original acquisition price.12 This potential turnaround is particularly noteworthy given Fidelity Investments' previous markdown of its Twitter stake by approximately 70% from the initial sale price.34 While details of the talks are subject to change, and the company may ultimately decide not to proceed with the financing, the discussions signal a possible shift in perception for the social media platform.12

Despite a significant drop in annual revenue from $5 billion in 2021 to $2.7 billion last year, X has reportedly improved its financial performance, nearly doubling its profitability based on adjusted EBITDA1. This improvement coincides with recent successful debt sales, where major banks completed the sale of $5.5 billion of debt backed by X at 97 cents on the dollar - a lower discount and larger size than initially anticipated2. These financial developments suggest a potential stabilization of X's financial position, which may be contributing to the renewed investor interest in the platform at its original $44 billion valuation31.

Renewed investor interest in X stems from several factors, including increased user activity leading up to the 2024 U.S. presidential election and Elon Musk's growing influence in Washington. This influence is seen by some investors as potentially beneficial for regulatory support or government contracts1. Additionally, the return of major advertisers like Amazon and Apple to the platform has bolstered confidence in X's future prospects2.

• Prominent investors who backed Musk's original acquisition of X in 2022 include Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority3.

• The ongoing funding talks and potential $44 billion valuation come amid a broader context of social media platform valuations, with Meta Platforms experiencing a 22% surge in shares this year2.

Major advertisers are making a significant return to X, Elon Musk's social media platform, after a period of withdrawal. Amazon has decided to ramp up its advertising on X, with the decision involving CEO Andy Jassy, indicating the importance of this move for the e-commerce giant1. Apple has also resumed advertising on X after a 15-month pause, currently running an ad campaign advertising Safari's focus on privacy2. Other major brands that have returned to advertising on X include Disney, IBM, Warner Bros. Discovery, Comcast, and Lionsgate Entertainment1. This return of advertisers is attributed to efforts by X's CEO Linda Yaccarino to rebuild trust and partnerships1. The resurgence of major advertisers on the platform could potentially boost X's advertising revenue, which may contribute to the ongoing discussions about X's $44 billion valuation round1.

As X seeks to raise funds at a $44 billion valuation, its sister company xAI is reportedly in talks to secure $10 billion in funding at a $75 billion valuation12. This potential investment comes alongside the release of xAI's latest AI model, Grok 3, which outperforms rival models in blind tests3. Grok 3, developed with significantly more computing power than its predecessor, is now available to X Premium+ subscribers and through standalone platforms43. These developments highlight the synergy between X and xAI, with Grok powering features on X's social network and potentially enhancing the platform's value proposition to investors and users alike45.