There is more humiliation for the many political and financial analysts who claimed that Elon Musk’s purchase of Twitter was a catastrophic mistake.
Having initially tried to back out of the deal, Musk eventually completed his takeover of Twitter back in October 2022 for $44 billion. He has since renamed it as X.
The move was widely derided by leftists and Democrats at the time as a catastrophic mistake and a sign that Musk was not the business genius so many believed him to be.
Many analysts also claimed that Musk had destroyed the platform by ending the company’s aggressive censorship regime and allowing conservative voices including The Gateway Pundit back onto the platform.
However, Musk’s turnaround efforts at the company appear to have succeeded in boosting its share price to its previous valuation.
The Financial Times reports:
Social media site X’s valuation has soared back to $44bn, underscoring the sharp turnaround in the company’s fortunes since its owner Elon Musk assumed the role of staunch ally to President Donald Trump.Investors valued the platform at $44bn in a so-called secondary deal earlier this month, in which they exchange existing stakes in the company, according to two people with knowledge of the matter.
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The new $44bn valuation represents a rebound for Musk and the group’s investors, including Andreessen Horowitz, Sequoia Capital, 8VC, Goanna Capital and Fidelity Investments. The deal would help set a price for the upcoming primary round.X’s revenues have dropped since Musk’s takeover, but it posted about $1.2bn in adjusted earnings before interest, taxes, depreciation and amortisation in 2024, according to two people familiar with the matter — roughly flat with the period before Musk’s takeover.
In addition to the prospect of becoming a highly profitable business, Musk’s purchase of the platform has had ramifications well beyond its own financial position.
By ending the censorship regime, Musk allowed the free flow of information where conservatives could share and distribute their ideas without being censored or deplatform.
As the platform’s owner, Musk has also seen his own following rise to a staggering 220 million people, giving him possibly the most influential megaphone in the entire world.
Using this megaphone, Musk gave his full support to President Trump’s candidacy and campaign, a factor that may have proved decisive in his eventual victory.
Inspired by China’s WeChat, Musk’s long-term plan for X is to transform it from a social media site into an “everything platform,” combining social networking, long-form content, payments, banking, shopping, and entertainment.
If he succeeds in implementing this vision, its valuation could skyrocket well beyond just $44 billion.
The post Humiliation For Left-Wing, Anti-Elon Analysts as X Platform Valued at $44 Billion — Same Price as Twitter Buyout appeared first on The Gateway Pundit.