3 ms·

Elon Musk's X obtains $44B valuation in sharp turnaround

11 points by retskrad 2y ago

retskrad 2y ago
https://archive.ph/cldLo https://archive.ph/cldLo
toomuchtodo 2y ago
> A further person noted, however, that the ebitda figure was “wildly adjusted”. “Valuation”
- thinkingemote 2y ago
  This caught my interest too. Shouldn't these figures have been audited by one of the big 4 accountancy firms and thus some have some defence against wildness?
  - Finnucane 2y ago
    "Investors are convinced that Musk will use his influence with the Trump administration to direct money into his own companies, and his fellow billionaires are willing to go along for the ride."
deleted 2y ago
[deleted]
fullshark 2y ago
How much is xAI and grok driving that valuation
- JumpCrisscross 2y ago
  Zero. This is about maintaining access to a powerful man.
- ViktorRay 2y ago
  xAI is a separate entity from X. They have some slight integration but operate as different companies.
  - ndsipa_pomu 2y ago
    However: > It also improved after Musk gave a 25 per cent stake in his artificial intelligence start-up xAI to investors in the social media company early last year. xAI has obtained a valuation of $45bn, and the novel arrangement has provided new security to X’s lenders and boosted the platform’s valuation.
    - ViktorRay 2y ago
      Yes it is an interesting arrangement. Take a look at what Pepsi did. Pepsi had purchased several fast food restaurant chains. Pepsi made its soft drinks the default ones available there. After several years Pepsi spun off the fast food companies as a separate holding company but Pepsi shareholders owned the shares in the new company. Pepsi sodas were still exclusively sold at the new companies. https://en.wikipedia.org/wiki/Yum!_Brands https://en.wikipedia.org/wiki/Yum!_Brands
- thinkingemote 2y ago
  Not directly, but the article does put a lot of weight on this, saying that investors feel more secure after the xAI valuation. > "It also improved after Musk gave a 25 per cent stake in his artificial intelligence start-up xAI to investors in the social media company early last year. xAI has obtained a valuation of $45bn, and the novel arrangement has provided new security to X’s lenders and boosted the platform’s valuation."
- dragonwriter 2y ago
  It’s driven entirely by expectation of Musk abusing his government role to corruptly favor his own companies. It is an investment in kleptocracy.
deleted 2y ago
[deleted]
Zigurd 2y ago
As reported here: https://wallstreetpit.com/125292-elon-musks-x-secures-1b-in-new-funding-valued-at-32b/ https://wallstreetpit.com/125292-elon-musks-x-secures-1b-in-... ...there was a $1B round with Elon and Darsana Capital Partners, which doesn't seem to be a VC, and the relative participation wasn't reported. This seems to be Elon bailing out Twitter to pay interest and operations deficits, dressed up as an investment. Oddly, though they could've probably priced the round any way they wanted to, the valuation reported was $32B.

11 points by retskrad 2y ago

retskrad 2y ago

https://archive.ph/cldLo https://archive.ph/cldLo

toomuchtodo 2y ago

> A further person noted, however, that the ebitda figure was “wildly adjusted”. “Valuation”

thinkingemote 2y ago
This caught my interest too. Shouldn't these figures have been audited by one of the big 4 accountancy firms and thus some have some defence against wildness?
- Finnucane 2y ago
  "Investors are convinced that Musk will use his influence with the Trump administration to direct money into his own companies, and his fellow billionaires are willing to go along for the ride."

deleted 2y ago

[deleted]

fullshark 2y ago

How much is xAI and grok driving that valuation

JumpCrisscross 2y ago
Zero. This is about maintaining access to a powerful man.
ViktorRay 2y ago
xAI is a separate entity from X. They have some slight integration but operate as different companies.
- ndsipa_pomu 2y ago
  However: > It also improved after Musk gave a 25 per cent stake in his artificial intelligence start-up xAI to investors in the social media company early last year. xAI has obtained a valuation of $45bn, and the novel arrangement has provided new security to X’s lenders and boosted the platform’s valuation.
  - ViktorRay 2y ago
    Yes it is an interesting arrangement. Take a look at what Pepsi did. Pepsi had purchased several fast food restaurant chains. Pepsi made its soft drinks the default ones available there. After several years Pepsi spun off the fast food companies as a separate holding company but Pepsi shareholders owned the shares in the new company. Pepsi sodas were still exclusively sold at the new companies. https://en.wikipedia.org/wiki/Yum!_Brands https://en.wikipedia.org/wiki/Yum!_Brands
thinkingemote 2y ago
Not directly, but the article does put a lot of weight on this, saying that investors feel more secure after the xAI valuation. > "It also improved after Musk gave a 25 per cent stake in his artificial intelligence start-up xAI to investors in the social media company early last year. xAI has obtained a valuation of $45bn, and the novel arrangement has provided new security to X’s lenders and boosted the platform’s valuation."
dragonwriter 2y ago
It’s driven entirely by expectation of Musk abusing his government role to corruptly favor his own companies. It is an investment in kleptocracy.

deleted 2y ago

[deleted]

Zigurd 2y ago

As reported here: https://wallstreetpit.com/125292-elon-musks-x-secures-1b-in-new-funding-valued-at-32b/ https://wallstreetpit.com/125292-elon-musks-x-secures-1b-in-... ...there was a $1B round with Elon and Darsana Capital Partners, which doesn't seem to be a VC, and the relative participation wasn't reported. This seems to be Elon bailing out Twitter to pay interest and operations deficits, dressed up as an investment. Oddly, though they could've probably priced the round any way they wanted to, the valuation reported was $32B.