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Sohrab Khawas
Sohrab Khawas
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Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Feb 19, 2025 08:40 UTC
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Elon Musk’s X Faces Cash Crunch and User Decline – Can New Funding Help?
X (formerly Twitter) is reportedly seeking new investment at a $44 billion valuation, the same price Musk paid for it in 2022.
This funding round, if successful, would be the first external investment since Musk's takeover.
Major banks are trying to sell off billions in X-related debt, adding financial pressure, while X explores new features and AI integration.
Elon Musk’s social media platform, X, is reportedly in talks to raise new funding at a $44 billion valuation. If successful, this could be a game-changer for the company, which has been navigating a rough patch since its dramatic transformation from Twitter. With advertisers pulling back, user numbers fluctuating, and financial pressures mounting, can Musk turn things around?
Here’s what we know so far.
Aiming for a Comeback
Musk originally bought X for the same $44 billion price in 2022, but the platform has faced ongoing financial struggles. Now, with talks of new funding, X appears to be looking for a fresh start. However, sources say discussions are still ongoing, and there is no guarantee the deal will go through. More updates are expected as talks continue.
First Outside Investment Since Musk’s Takeover
If the funding is secured, it would be the first time outside investors have backed X since Musk took it private. This could signal renewed confidence in the platform. Meanwhile, major banks—including Morgan Stanley, Bank of America, and Barclays—are reportedly preparing to sell up to $3 billion in X-related debt, adding more complexity to the company’s financial situation.
X has not publicly commented on the funding talks, but it’s clear Musk is still committed to the platform’s future. Whether this investment happens or not, the outcome could be a turning point for the company.
Is X Financially Stable?
Despite Musk’s ambitious plans, X continues to struggle financially. In an email last month, Musk admitted revenue is down, user growth is slow, and the company is barely breaking even. Advertisers have pulled back, and competition from platforms like Bluesky and Threads is growing.
Adding to the pressure, banks like Bank of America, Barclays, and Morgan Stanley are selling parts of the $13 billion debt from Musk’s takeover. With over $1 billion in annual interest payments, X is under financial strain. Musk had predicted the company would soon be profitable, but that has not happened yet.
To improve its position, X has introduced new features, including job listings, a video section, and GrokAI. Whether these changes will help remains uncertain.
Musk has bet big on X before, but will this be the winning hand or another costly gamble?
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