The Blubber

AI has acquired X (formerly Twitter) at $33 billion ($45 billion less $18B of debt.

After experiencing a significant drop in value, X is now valued at $44 billion — the same amount Elon Musk paid for the platform, previously known as Twitter, in 2022. This valuation, reported by the Financial Times on Tuesday, is based on a recent transaction in which investors sold their shares in the app to other investors.

The report coincided with a Bloomberg article revealing that Musk had invested another $150 million in X last year, buying shares at a valuation close to the 2022 purchase price. This rebound comes just months after Fidelity had estimated the company's worth at $12.32 billion, a staggering 72% decrease from Musk's purchase price.

What’s driving the recovery?
For one, major advertisers like Disney and Apple have resumed their partnerships with X in recent months. Additionally, the platform has significantly reduced its expenses since Musk's takeover.

According to the Financial Times, X posted $1.2 billion in earnings before interest, tax, depreciation, and amortization (EBITDA) last year. For comparison, Twitter reported a $221 million loss in 2021 — its final full year as a public company — though it had profitable years in 2018 and 2019, with earnings of $1.2 billion and $1.45 billion, respectively.

Since Musk assumed control in late 2022, X has implemented several changes, including offering users the option to pay for a blue check mark and introducing Grok, its artificial intelligence model.

Some investors see Musk's close relationship with President Trump as a potential advantage for X. However, this connection hasn't necessarily benefited Tesla, Musk's electric car company, whose stock has fallen 38% since the beginning of the year amid criticism of Musk's involvement with the Department of Government Efficiency. Despite this, Tesla's stock rose 4.5% on Wednesday, reaching $235.39 per share.