Elon Musk’s acquisition of X for $44 billion in 2022 was partly financed by loans from banks including Morgan Stanley, with much of the debt remaining on the banks’ balance sheets due to investor uncertainty about X’s business. However, Musk’s growing influence in President Trump’s administration has helped change perceptions, leading to a recent spike in X’s revenue and a successful sale of over $12 billion of debt by the banks.
Selling off the debt has been beneficial for both Musk and the banks, with investors now showing interest in X due to improving revenue and the return of big advertisers like Amazon and Apple. The company’s revenue jumped 21 percent in December, ad revenue related to the Super Bowl outperformed the previous year, and cost-cutting measures have also impressed investors.
Musk’s association with the Trump administration has been seen as a positive factor for X’s future success, with investors believing that his government position boosts the likelihood of repayment. The return of advertisers to X after previous controversies has been a significant factor in the company’s recent financial upturn.
While some advertisers have expressed concerns about backlash from advocacy groups or Musk himself, the overall sentiment among investors seems positive, with the expectation that X’s fortunes will continue to improve under Musk’s guidance. Musk’s other businesses, such as Tesla and SpaceX, are also expected to benefit from his position in the government.
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