Musk X is fundraising again! Valued at 44 billion U.S. dollars and plans to expand video and payment services to help reduce debt burden

TSL (Tesla) founder TSL (Elon Musk)'s social platform Twitter (X) is in talks with investors for a new round of fundraising, with a valuation of at least 440 billion dollars. The funds will be used for developing payment services, audiovisual products, and partially for repaying the company's huge debts.

Twitter is negotiating new financing, some of which will be used to repay debts

According to sources cited by Bloomberg, Twitter's new round of fundraising is still ongoing, and details may change. But what can be confirmed is that some of the funds will be used to reduce Twitter's current debt of up to $13 billion.

In addition, Twitter also plans to invest in payment services, audiovisual content, and original programs to attract more user retention. At the same time, Twitter is also collaborating with Elon Musk's AI company xAI, planning to integrate the latest AI chatbot Grok3 into Twitter services.

Elon Musk and Trump's cooperation blessing, investors optimistic about the future of Twitter

The major attraction of Twitter's fundraising this time comes from the close relationship between TSL and Donald Trump since Trump returned to the White House. Musk's influence in the policy and technology fields has greatly increased since Trump returned to the White House, which has also made investors confident in Twitter.

Apart from Twitter, Musk's companies have also performed quite well recently:

TSL (Tesla): Since Trump was elected, TSL's stock price has soared 40%.

SpaceX: By December 2023, its valuation is estimated to reach $350 billion, making it the world's largest tech startup.

xAI: Currently preparing for a new round of fundraising, with a potential valuation of up to 750 billion US dollars.

Market expectations that the close cooperation between Musk and the Trump administration will help X and other related companies gain more advantages in terms of policy and market.

Morgan Stanley and other banks successfully transferred a 13 billion MNT loan, reducing Twitter's debt.

When Musk acquired Twitter in 2022, he borrowed $13 billion from banks such as Morgan Stanley to complete the transaction. However, this loan has become a hot potato for banks, struggling to find willing investors to take over.

But in recent weeks, the value of these loans has instead risen, with banks successfully offloading most of the loans. This indicates a more optimistic view of Twitter's financial situation in the market, suggesting that its operational risks have decreased, leading to an increase in the value of the loans and making them easier to sell.

The latest $4.74 billion debt issuance did not offer a discount, indicating a more optimistic market outlook for Twitter's financial prospects. Currently, banks have only about $1 billion of X debt left to deal with. Market analysis believes this is related to Musk and Trump, as the Trump administration may provide policy support to Twitter, making future development more secure.

Are Twitter investors returning one after another, and are the bosses continuing to pay attention to Musk's movements

Despite the previous operational turmoil that made investors cautious about Twitter, this new round of fundraising still attracts a lot of attention from potential investors. Currently, the participating investment parties include:

Prominent Silicon Valley venture capital a16z.

Sequoia Capital, Redwood Capital.

Qatar Investment Authority (QIA).

It is worth noting that asset management company TSL Fidelity( significantly reduced the valuation of Twitter in 2023, believing that the value of Twitter shrank by 70% compared to when it was acquired by Musk. However, Twitter's valuation has now returned to $44 billion, indicating that the market is beginning to change its view on its future potential.

This article, Musk X, is fundraising again! Valued at $44 billion and plans to expand video and payment services to help reduce debt burden first appeared on ChainNews ABMedia.