Elon Musk’s acquisition of X for $44 billion in 2022 was partly financed through loans from banks like Morgan Stanley. However, due to concerns about X’s struggling business, banks kept much of the debt rather than quickly selling it off. This changed when Musk’s influence in President Trump’s administration led to increased investor confidence in X.
Recently, banks sold roughly $4.7 billion of X’s debt, exceeding their original $3 billion target. Musk’s role as a close adviser to Trump and the platform’s popularity for administration news played a part in boosting investor interest. X’s revenue has seen a significant increase and advertisers have returned, including big names like Amazon and Apple.
The shift in investor sentiment has also been bolstered by X’s improved financial performance, with revenue rising 40% last year. Additionally, Musk’s xAI venture licensing data to X has contributed to the company’s growth. The successful sale of the debt has been a relief for both Musk and the banks involved.
Musk’s alignment with Trump has impacted X’s fortunes positively, attracting investors and advertisers while boosting revenue. The company’s cost-cutting measures and Musk’s government role have further enhanced investor confidence in X’s future prospects. However, concerns have been raised about potential retribution from Musk against advertisers who have not returned to X, as seen in his lawsuit against several major brands and advocacy groups. The ties between Musk’s various ventures and the White House could potentially lead to further business opportunities.
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