When Elon Musk bought X for $ 44 billion in 2022, more than a quarter was funded by loans from banks including Morgan Stanley. Banks usually sell such loans quickly, but in this case they kept that loan too much as investors were reluctant to bet on the flying business of the social media company.
The new power of Mr. Musk in the administration of President Trump has helped to change the minds of investors.
On Thursday, banks sold a loan of about 4.7 billion dollars X, according to two people familiar with the transaction, more than $ 3 billion he had intended to sell originally.
Mr. Musk, who has become a close advisor to the President and is running a government proficiency initiative, has faced questions about whether they lead companies – including electric automakers Tesla and Rocket Company SpaceX – MR – MR As they are benefiting from their position.
The X has become a Go-Two platform for information about the administration’s plans, which Mr. Musk has broadcast for over 217 million followers of his account. The advertisers have returned to the draw in X, people acquainted with deals said, promoted increase in revenue. The company told investors that its revenue increased by 21 percent in December from a month ago, a person with knowledge of finance said.
An X spokesperson and Morgan Stanley refused to comment. Bloomberg told first Jump in revenue And Transaction details,
Selling loan – which was a total of $ 12.5 billion at the time of acquisition – helps Mr. Musk and banks, who have been unhappy with it for two years. Just two months ago, investors were negotiating to buy that loan at a loss of 10 percent to 20 percent for banks, a person said that a person involved in the discussion said.
But the investor’s hunger has moved to a great extent. Last week, banks sold a loans of $ 5.5 billion to a small group of investors, said by people familiar with the transaction. This month, Vyas Capital Partners bought a $ 1 billion loan. Banks have now sold all its X loans, making them about 1 billion dollars on their balance sheet.
Investors were motivated to purchase X’s loans due to several factors, including the company’s reform revenue. Advertisements like Amazon and Apple have returned after Mr. Musk’s escape from controversial works, three people involved in the discussion said.
After a disappointing 2023, X’s revenue rose by 40 percent last year, said the company’s finance said. People familiar with the X business said that more customers are paying for the premium service of the X, and the Artificial Intelligence Venture of Mr. Musc, said people familiar with the business of XA, X.
Brett Vetz, the head of X’s major material, wrote in an internal email in January, “More business has been coming in the last two years.”
According to an internal document viewed by the Times, the company was scheduled to earn $ 7.9 million in the respective advertising revenue after going to the Super Bowl last Sunday, which was slightly better than $ 7.2 million than the incident in 2024.
People said that the company’s widespread cost cut measures, including reducing employees more than 80 percent, have also appealed to investors.
The fate of X – both economic and politically – has improved because Mr. Musk has align himself with Mr. Trump, three people familiar with the transaction.
And while people familiar with the deal said that investors did not expect to pay obeisance by lending money with Mr. Musk, they now saw the future of their companies as bright that they were in the heart of the government. He also said that he believes that the new role of Mr. Musk means that money is more likely to be paid back.
Some advertisers who recently returned to X were concerned about the results of advocacy groups, if they supported the company, three advertising industry officials said that to speak publicly about the case. Were not authorized. Others were concerned about possible vengeance from Mr. Musk if they did not return.
Last year, Mr. Musk filed a lawsuit for the media responsible for several large brands and global alliances, leading the World Federation of Adverters to a non -profit coalition of leading advertisers, claimed that the group had boycotted against X. Filed, but Mr. Musk has continued to suppress his case against advertisers. This month, his lawyers added several companies to the case, including Lego, Nestle and Shell.
Mr. Musk’s relations for the White House could help in his other businesses. After Mr. Trump was elected, Palauntir officials sent a memo to the engineers, asking that they specifically use Groke, AI Chatbot, designed by Mr. Musk’s Zai, said two Palatir employees. This was the first time the company asked him to use the grouke on other chatbots.
A spokesperson from Palauntir refused to comment.
Ryan Mac And Molasses frankel Contribution reporting.
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