Elon Musk buys $150M more in X/Twitter as valuation climbs to $44B

Elon Musk has just poured another $150 million into X, buying up more shares at a valuation close to what he paid in 2022.

The investment, made sometime last year, was revealed in Kingdom Holding’s 2024 annual report on Wednesday, which described a majority stakeholder of a private social media company investing at a transaction price matching the company’s carrying value on its balance sheet.

A person with direct knowledge reportedly confirmed to Bloomberg that the report was referring to Elon and X, previously known as Twitter.

Kingdom Holding, which has held a stake in X since 2011, reported that as of December 31, it valued its investment in X at 985 million riyals ($262.7 million). That implies a total company valuation of $29.2 billion, nearly matching what Elon and his group of investors paid in October 2022. The company still holds $13 billion in debt, tied to Elon’s original buyout financing.

Elon dominates X ownership, eyes more stakes

As of October 2023, Elon controlled 74% of X, according to ownership filings in Nebraska. Despite that dominance, he has also shown interest in acquiring more minority stakes at the same valuation, keeping his grip tight on the platform.

Kingdom Holding and its founder, Prince Alwaleed bin Talal Al Saud, remain some of the largest minority shareholders in X, though their influence is limited compared to Elon’s overwhelming control.

Elon and Kingdom Holding have not responded to requests for comment on the transaction. However, documents confirm that the purchase had not been previously reported, making this the first public revelation of the deal.

X valuation jumps to $44B as Trump’s election fuels investor interest

Elon’s social media company has struggled since he took control, losing a significant portion of advertisers who feared their brands could appear alongside unmoderated content. By January 2024, Fidelity Investments had slashed its valuation of X by 68%, pegging it at under $10 billion.

Now, in a secondary deal earlier this month, investors traded stakes in X at a $44 billion valuation, signaling a dramatic recovery. The reversal came after Elon aligned himself with Donald Trump, following the former president’s return to the White House.

X is also trying to raise $2 billion in a new primary funding round, with plans to pay off more than $1 billion in junior debt Elon took on during the original Twitter buyout. The new capital would also go toward developing new products, particularly in payments and AI.

Banks finally unload Twitter debt after two years

The $12.5 billion in loans Elon used to buy Twitter have been a major headache for Wall Street banks, including Morgan Stanley, Bank of America, Barclays, and MUFG. They struggled to offload the debt as investors revalued X at deep discounts.

Now, with X’s valuation back to $44 billion, banks have successfully sold nearly all of the loans, easing their exposure to Elon’s deal. The improved investor appetite came after Elon secured influence in Trump’s administration, serving as the head of the Department of Government Efficiency (Doge)—a program aimed at cutting regulatory barriers.

Another key factor was Elon’s decision to grant X investors a 25% stake in his AI startup, xAI. That company is already valued at $45 billion, giving X additional financial security and making lenders more comfortable with its future.

X expands beyond ads, pushes payments and AI

X isn’t just about social media anymore. Elon has pushed the company toward becoming an “everything app,” with payments, AI, and new tech integrations. In January, CEO Linda Yaccarino announced the launch of X Money, a digital wallet and peer-to-peer payments platform, set to go live later this year with Visa as a key partner.

The company is also ramping up AI integration. On Monday, X rolled out Grok 3, the newest version of its AI chatbot, for premium users. Grok 3 was developed by xAI, and Elon has big plans to use its technology to enhance X’s advertising capabilities and product offerings.

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