New York — When Elon Musk took control of Twitter in late 2022, the platform was already in a precarious position. Social media had become increasingly fragmented, with emerging competitors drawing users away from traditional giants like Twitter, Facebook, and Instagram. Musk’s decision to acquire the company for $44 billion was met with skepticism, not just because of the hefty price tag but also because of the drastic measures he took in the aftermath. Within months of the takeover, Musk laid off thousands of employees, dismantled Twitter’s existing leadership, and rewrote key policies that had previously governed the platform. What followed was a period of intense volatility—advertisers pulled their budgets, user sentiment fluctuated, and X’s valuation plummeted to a fraction of what Musk had paid.
Now, nearly two and a half years later, X appears to be experiencing a dramatic reversal of fortune. Reports suggest that Musk is in discussions to raise additional funding at a valuation of $44 billion, signaling that the company may have clawed its way back to the price he originally paid. While there are no guarantees that these negotiations will reach completion, the mere possibility of X being restored to its full valuation is a testament to Musk’s ability to navigate even the most turbulent business environments.
The key to X’s recovery has been its ability to regain advertiser trust. When Musk first took over, advertisers recoiled at the changes he implemented, particularly those related to content moderation. The platform became a hotbed for controversy, with reports of increased hate speech and extremist content prompting many brands to withdraw their advertising dollars. However, in recent months, there has been a noticeable shift. Some of the biggest names in tech, including Apple and Amazon, have resumed advertising on X, indicating a growing belief that the platform has stabilized. The decision to reinstate these major advertisers did not happen in a vacuum; it came after Musk made calculated moves to address their concerns, even as he continued to push the platform in a direction that diverges from traditional social media norms.
One of the most intriguing aspects of X’s resurgence is its connection to Musk’s artificial intelligence company, xAI. With xAI currently seeking a $75 billion valuation in its latest funding round, the potential for cross-pollination between the two entities has added an extra layer of intrigue to X’s financial standing. Investors are taking note of Musk’s ability to integrate his various ventures, and X’s association with xAI has given it an added degree of legitimacy in the broader tech landscape.
Musk’s personal brand has also played a pivotal role in X’s comeback. Throughout his career, he has demonstrated an uncanny ability to turn struggling enterprises into industry leaders, whether it be Tesla, SpaceX, or now X. His influence extends far beyond the realm of social media, and investors are acutely aware that betting against Musk has rarely been a winning strategy. His recent involvement in the Trump administration has only amplified this dynamic, further entrenching X as a central platform for political engagement in the United States.
Despite its recent progress, X is still facing significant challenges. The platform’s reputation has yet to fully recover from the upheaval of the past two years, and the social media landscape remains fiercely competitive. While X has successfully brought back some advertisers, there is no guarantee that they will remain loyal in the long run. Rival platforms, particularly those that emerged in response to Musk’s takeover, continue to pose a threat, offering alternatives that appeal to users disillusioned by X’s shift in direction.
Musk has repeatedly stated that his vision for X extends beyond social media. He envisions it as an “everything app,” integrating payments, e-commerce, entertainment, and communication into a single platform. While X has made strides toward that goal, including forming a partnership with Visa to develop digital wallet services, it is still far from becoming the all-encompassing digital ecosystem that Musk envisions. The long-term success of X will depend on whether it can evolve beyond its current form and become something more than just a rebranded version of Twitter.
For now, however, Musk has done what few thought possible: he has taken a company that was seemingly in freefall and positioned it once again as a dominant force in the social media landscape. Whether this resurgence is sustainable remains to be seen, but if there is one thing that history has shown, it is that Musk thrives in the face of adversity.
