Elon Musk sells social media platform X for $33 billion
World
Elon Musk’s artificial intelligence company xAI has acquired X – the social media platform formerly known as Twitter – for $33 billion. This marks another significant step in the billionaire’s efforts to strengthen his technological empire.
The deal, announced on Friday, is part of Musk’s business empire, which also includes Tesla and SpaceX, and may facilitate the training of his AI model known as Grok. In a post on X, Musk announced the transaction, stating: “The merger values xAI at $80 billion and X at $33 billion ($45 billion less $12 billion in debt).”
The specifics of the deal remain unclear, including how investors will be compensated, how X’s leadership will be integrated into the new company, and what regulatory scrutiny might follow. Analysts believe this move could have a significant impact on the future of X.
PP Foresight analyst Paolo Pescatore called the decision “somewhat unexpected” and noted: “To some extent, this opens a new chapter in X’s turbulent history.”
According to DA Davidson & Co analyst Gil Luria, “The $45 billion valuation is no coincidence. It is $1 billion more than what was spent to take Twitter private in 2022. Musk may be looking to share the value of xAI with X’s co-investors.”
The specifics of the deal remain unclear, including how investors will be compensated, how X’s leadership will be integrated into the new company, and what regulatory scrutiny might follow. Analysts believe this move could have a significant impact on the future of X.
PP Foresight analyst Paolo Pescatore called the decision “somewhat unexpected” and noted: “To some extent, this opens a new chapter in X’s turbulent history.”
According to DA Davidson & Co analyst Gil Luria, “The $45 billion valuation is no coincidence. It is $1 billion more than what was spent to take Twitter private in 2022. Musk may be looking to share the value of xAI with X’s co-investors.”
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