The business scientist of making money has done it again and Twitter (yes, X) is back to $44 billion valuation: “Elon Musk’s social media platform, X (formerly Twitter), is in talks with investors to raise funds at a $44 billion valuation, Bloomberg News reports.”. Simply, Twitter is reborn and resurrected.

Despite X’s attempt to maintain its original purchase valuation, Fidelity Investments, one of the investors that helped finance Musk’s Twitter buyout, has been marking down its stake in the company. As of December 2024, Fidelity valued its Twitter shares at about 70% less than the $44 billion Musk paid, indicating a substantial devaluation of the platform. This markdown suggests that institutional investors view X’s current financial state as weak, with limited growth prospects.

While Bloomberg notes that discussions over the new funding round are ongoing and subject to change, it remains unclear whether X will successfully secure the investment. There is also the possibility that the company could abandon the talks altogether.

Trump won the 2024 US presidential election and Twitter was the main global square for the planning and execution. With the anointing of Trump 2.0 presidency, everything in the Musk business world will see life. Core advertisers are returning, the old “propaganda” content is now the mainstream news, and suddenly the near-term trajectory of Twitter looks promising.

In a “major reversal,” Amazon is starting to spend more advertising dollars on X, after scaling back in 2023 amid concerns about content moderation, The Wall Street Journal reports, citing anonymous sources. Apple also is reconsidering its stance, having pulled out entirely, according to the Journal, again citing an anonymous source. Tensions with advertisers have weighed on X following its acquisition by Elon Musk, but its financials show “signs of a rebound,” Bloomberg reports.

We can learn one thing from Musk: he was gracious to compensate Twitter investors from xAI , and by doing that, he de-risked their investments and got them on his side. Some people would have said “Twitter is ours, xAL is mine”.

My Response on LinkedIn: If I write what Musk did and put your name, would that be Ubuntu? Think beyond Musk. He started a new company and gave out a portion to those losing money because Twitter was struggling. That is a communal spirit. He could have kept the new company to himself. But he shared with his investors to ensure they won with him

With this playbook and Ubuntu spirit where people understand that he would do ALL necessary to make sure they do not lose money, Twitter has a future, and I expect it to return to the public market by Q4 2026!

That is the news today, but there is another important thing Musk did which few have discussed at scale. Musk bought Twitter (now called X), and opened holes in people’s finances, as the valuation of X has since lost to the gravity of value destruction. But this guy did something uncommon: he moved a huge percentage of shares from xAI (his AI company) to enable those who followed him in Twitter to be made whole. (Those investors are now smiling).

In other words, instead of seeing his Twitter investors crying, Musk said: listen, you trusted me and came along with me. Twitter did not fly because things happened, but I have another better “bird”, take it, and with this, you will be fine.

Elon Musk’s X Seeks Fresh Investment at $44 Billion Valuation Amid Financial Struggles

Elon Musk’s social media platform X, formerly Twitter, is in talks to raise money at a $44 billion valuation, Bloomberg reports, citing anonymous sources. That’s the same as what Musk paid for the company back in 2022, in a “remarkable turn of fortunes” after the takeover and subsequent loss of advertisers caused its value to plummet. The talks, which mark the first known investment round since it was taken private, are ongoing and could change.

Elon Musk’s social media platform, X (formerly Twitter), is in talks with investors to raise funds at a $44 billion valuation, Bloomberg News reports.

The proposed valuation mirrors the amount Musk paid to acquire the platform in 2022, and also underlines the depth of X’s financial woes, as the company struggles to retain advertisers, service its massive debt, and reverse its declining revenue.

Since Musk’s controversial takeover, X has seen its financial stability deteriorate, with advertisers fleeing the platform due to concerns over content moderation and the billionaire’s outspoken political views. The company has also grappled with a mounting debt crisis, as banks that financed Musk’s leveraged buyout have struggled to offload the debt to secondary buyers.

Despite X’s attempt to maintain its original purchase valuation, Fidelity Investments, one of the investors that helped finance Musk’s Twitter buyout, has been marking down its stake in the company. As of December 2024, Fidelity valued its Twitter shares at about 70% less than the $44 billion Musk paid, indicating a substantial devaluation of the platform. This markdown suggests that institutional investors view X’s current financial state as weak, with limited growth prospects.

While Bloomberg notes that discussions over the new funding round are ongoing and subject to change, it remains unclear whether X will successfully secure the investment. There is also the possibility that the company could abandon the talks altogether.

If successful, this would mark the first time Musk has sought external investment for X since taking it private. Unlike Tesla and SpaceX, which have continued to attract investors due to strong growth prospects, X has struggled to present a compelling case for financial backers.

Banks Struggling to Offload X’s Debt

One of the biggest financial burdens X faces stems from the $13 billion in debt that Musk took on to finance his acquisition of Twitter. Until recently, the banks that underwrote the deal—including Morgan Stanley, Bank of America, and Barclays—have been unable to sell off the debt to other investors, forcing them to hold onto what is now considered one of the worst merger-financing deals in recent history.

Typically, banks offload such debt to investors shortly after closing a deal, but X’s declining revenue, coupled with concerns over its long-term viability, has made it difficult to find buyers. At some point, some of the banks reportedly considered selling portions of the debt at steep discounts just to cut their losses, but even at a markdown, interest from buyers has remained weak.

X’s revenue has reportedly declined by over 50% due to advertiser pullbacks, making it difficult to generate enough cash flow to service its debt payments. With Musk now seeking outside investment, it raises further questions about X’s ability to return to profitability in the near future.

Musk’s “Free Speech” Policies Blamed for X’s Decline

Much of X’s financial struggles have been attributed to Musk’s sweeping changes to the platform in the name of “free speech.” After acquiring Twitter, Musk drastically reduced content moderation, reinstated previously banned accounts—including those of far-right figures—and disbanded the company’s Trust and Safety Council. These moves alienated major advertisers, many of whom feared that their brands would be associated with controversial or harmful content.

Musk’s decision to overhaul the verification system by introducing paid blue check marks further destabilized the platform, leading to a surge in impersonation and misinformation. Many brands saw their accounts mimicked by trolls, further eroding confidence in advertising on the platform. As a result, major corporations such as Apple, Disney, and IBM either paused or drastically reduced their ad spending on X, cutting off a critical revenue stream.

Compounding the problem, Musk has frequently engaged in public political debates, making inflammatory statements that have only served to alienate more advertisers. His open support for Republican politicians, including President Donald Trump, and his willingness to amplify conspiracy theories have added to the platform’s perception as a divisive and volatile space.

In response to these financial woes, X has attempted to pivot toward a subscription-based model to reduce reliance on advertising revenue. However, the uptake for paid features such as X Premium (formerly Twitter Blue) has been lukewarm, failing to generate the kind of revenue needed to replace lost ad dollars.

While Musk is seeking investment at the same $44 billion valuation he originally paid for Twitter, many analysts argue that this figure does not reflect the company’s current market reality. Fidelity Investments, one of the firms that helped finance Musk’s buyout, has repeatedly marked down the value of its stake in X.

Given this steep decline, analysts believe that securing investment at the $44 billion valuation could prove challenging. Musk’s ability to convince investors to buy into X at this price would likely depend on presenting a strong case for future growth, which remains uncertain given the platform’s struggles to stabilize revenue.

Musk’s Other Ventures Thrive While X Flounders

While X has been mired in financial difficulties, Musk’s other companies have continued to thrive.

Tesla’s stock has surged over 40% since Donald Trump’s election, as investors anticipate that a Republican-led administration could ease regulatory pressures on the electric vehicle industry. Meanwhile, SpaceX’s valuation skyrocketed to $350 billion as of December 2024, reflecting growing investor confidence in its dominance of the commercial space sector.

Additionally, Musk’s artificial intelligence startup, xAI, is in talks to raise $10 billion at a $75 billion valuation, highlighting the continued enthusiasm for AI-related investments.

This contrast between X’s struggles and Musk’s other successes underscores how the social media platform has become an outlier in his business empire. While Musk has a track record of turning ambitious ventures into success stories, X remains his most financially troubled acquisition to date.

Will Investors Bite?

The big question remains: will investors be willing to inject fresh capital into X at a $44 billion valuation? Given the platform’s declining revenue, advertiser exodus, and ongoing debt issues, many analysts believe that X is unlikely to fetch such a high valuation in its current state.

However, if Musk succeeds in securing investment at this price, they note, it could denote a renewed confidence in his long-term vision for the platform. On the other hand, if investors push back or demand a lower valuation, it would serve as further confirmation that X is now worth far lesser than what Musk initially paid for it.

Elon Musk’s social media platform X, formerly Twitter, is in talks to raise money at a $44 billion valuation, Bloomberg reports, citing anonymous sources. That’s the same as what Musk paid for the company back in 2022, in a “remarkable turn of fortunes” after the takeover and subsequent loss of advertisers caused its value to plummet. The talks, which mark the first known investment round since it was taken private, are ongoing and could change.

The Nigerian government, through the Federal Inland Revenue Service (FIRS), has taken legal action against Binance Holdings Limited, demanding an extraordinary sum of $79.5 billion and N231 million in alleged economic losses linked to the company’s operations in Nigeria.

Additionally, the government is seeking $2 billion in unpaid corporate income taxes for the fiscal years 2022 and 2023, marking a dramatic escalation in the legal battle between Nigerian authorities and the world’s largest cryptocurrency exchange.

The latest lawsuit, filed at the Federal High Court in Abuja, accuses Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, of operating unlawfully within the country. The Nigerian authorities claim Binance failed to register with the FIRS for tax compliance, violated multiple regulatory provisions, and ultimately caused significant financial harm to the nation.

According to court documents, the government is imposing additional penalties on Binance, including a 10% fine for non-payment of income taxes for 2022 and 2023. Furthermore, it is demanding a 26.75% interest rate—corresponding to the prevailing Central Bank of Nigeria (CBN) lending rate—on the unpaid amounts, calculated from January 1, 2023, and January 1, 2024, respectively.

Nigerian authorities allege that Binance intentionally obscured its business activities despite having what they describe as a “significant economic presence” in Nigeria. The lawsuit cites violations of the Companies Income Tax (CIT) Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN’s Regulatory Framework for Mobile Money Services, and the Significant Economic Presence (SEP) Order.

The SEP Order, enacted in May 2020, mandates that foreign companies engaged in digital services become subject to Nigerian taxation if they meet specific criteria, such as generating an annual gross turnover of at least N25 million (or its equivalent in other currencies).

The case against Binance is built on findings from an investigation by the Office of the National Security Adviser (NSA), conducted in collaboration with the FIRS and other regulatory agencies. Investigators claim that Binance has been operating in Nigeria for over six years without registering with the appropriate tax authorities.

In an affidavit submitted to the court, Jimada Mohammed Yusuf, a member of the NSA’s Special Investigation Team, stated that Binance executives themselves confirmed the company’s long-standing presence in Nigeria. During a meeting with the Securities and Exchange Commission (SEC) in 2024, Binance representatives allegedly acknowledged having 386,256 active Nigerian users on its platform, with a trading volume of $21.6 billion and net revenue of $35.4 million for the year 2023.

Nigerian authorities have accused Binance and its executives of multiple infractions, including offering financial services without necessary licenses, operating without required permits, failing to comply with the Money Laundering Act, and providing currency speculation services without authorization. The government also claims that Binance unlawfully facilitated trading in the Nigerian naira on its platform even after supposedly delisting the currency following an investigation by the NSA.

The affidavit further alleges that Binance obstructed Nigerian regulators by refusing to provide full disclosure of its financial records for the past six years. Yusuf informed the court that despite multiple demands from the NSA and a Federal High Court order requiring Binance to submit its business records to the FIRS through the Economic and Financial Crimes Commission (EFCC), the company failed to comply.

With Binance allegedly refusing to settle its tax obligations, the FIRS has asked the court to declare that the company is liable to pay annual corporate income tax to Nigeria for maintaining a significant economic presence in the country. The tax agency is also requesting a ruling affirming that Binance and its executives must file income tax returns for 2022 and 2023.

The FIRS is seeking a court order compelling Binance to pay $2 billion in outstanding income taxes for the two years in question, along with an additional 10% annual penalty on unpaid taxes. It is also demanding that Binance pay a 26.75% interest rate—reflecting the prevailing CBN lending rate—on the outstanding amounts until full payment is made.

Additionally, the FIRS wants Binance to compensate the Nigerian government with $79.5 billion and N231 million, which it claims represent the economic losses caused by the company’s operations in Nigeria.

Legal Battle Intensifies After Bribery Allegations

The lawsuit comes amid heightened tensions following explosive bribery allegations made by Binance executive Tigran Gambaryan. Gambaryan recently accused three Nigerian lawmakers—Peter Akpanke, Philip Agbese, and Ginger Obinna Onwusibe—of demanding a $150 million bribe from Binance during negotiations. The lawmakers have denied the allegations, with Agbese calling the claims defamatory.

The bribery controversy has further complicated Binance’s legal troubles in Nigeria, as the government continues to crack down on the crypto exchange. This lawsuit is the third major legal action taken by federal agencies against Binance, with separate cases pending on charges of tax evasion, money laundering, and foreign exchange violations.

Analysts Warn of Chilling Effect on Investors

The escalating legal actions against Binance have sparked concern among financial analysts and investment experts, who warn that Nigeria may be setting a dangerous precedent capable of scaring off foreign investors.

SBM Intelligence, a leading risk consultancy firm, has warned that the Nigerian government’s aggressive approach—combined with the bribery allegations—could severely damage the country’s reputation as an investment destination. The firm noted that potential investors, especially in the digital finance and technology sectors, might view Nigeria as a hostile environment where regulatory risks are too high.

Others have argued that while enforcing tax compliance is necessary, Nigeria’s handling of the Binance case could deter international companies from expanding operations in the country. Some observers have drawn comparisons to similar regulatory crackdowns in other nations, but argue that the magnitude of the fines and the allegations of government officials seeking bribes make the Nigerian case particularly troubling.

Meanwhile, Binance continues to deny all charges, maintaining that it has always operated within the bounds of Nigerian law.

The case before Justice Inyang Ekwo of the Federal High Court in Abuja has been adjourned to March 3, 2025, while other proceedings against Binance remain ongoing before Justice Emeka Nwite in a separate lawsuit filed by the FIRS and EFCC.