After Elon Musk Twitter bought in October 2022 for 44 billion dollars (at the time 44 billion euros) everyone seemed to agree: Musk had paid far too much for the struggling social media platform.
Musk changed the name (to X), carried out a mass discharge and relaxed fashion rules. The amount of hatred, racism and fake news on the platform increased accordingly.
Advertisers walked away and the value of X fell at its low point, under 10 billion dollars. Why on earth had Musk bought X for so much money and subsequently focused on it? It was all difficult to follow, just like more that Musk does.
But Musk has, at least financially, received x on top. The value of X is currently back on the amount that Musk paid, 44 billion dollars, the Ft This morning. X is working on a new financing round and wants to raise around 2 billion dollars.
How is that possible? Due to the enormous cost savings, especially in staff, X has become a profitable company (more than 1 billion dollars). And because Musk investors in X also gave the opportunity to put money in Musks Highly rated AI company Xai, he was able to negotiate good interest rates on loans. After the upcoming investment round, X would even be debt -free again, according to the FT.
What also helps: Musks alliance with US President Donald Trump, who, by the way, still prefers to communicate through his own social medium Truth Social. Since Musk walks around in the White House, other tech companies, such as Amazon, have staged their marketing spending on X substantially.