Elon Musk’s X doubled its adjusted EBITDA since 2022 takeover: report

It appears that Elon Musk’s $44 billion investment to acquire Twitter may not be his worst business decision after all. 

As per a recent report from The Wall Street Journal, investors are now clamoring to get a piece of the social media platform.

The report:

• As per the WSJ, banks wrapped up the sale of $5.5 billion in debt backed by X on Wednesday.
• Citing people reportedly familiar with the matter, the publication noted that the banks had initially planned to sell about $3 billion at about 95 cents on the dollar.
• However, due to demand from investors, the deal was upsized. 
• Ultimately, investors ended up buying the loans at 97 cents on the dollar.
• The floating-rate debts carry an interest rate of about 11%, the WSJ reported.

X’s turnaround:

• Twitter saw a drop in valuation following Elon Musk’s acquisition of the social media company. 
• An exodus of advertisers immediately after Musk’s acquisition also resulted in X losing a notable portion of its advertising revenue.
• Musk, however, trimmed down Twitter and adopted strategies that made the company less reliant on advertising revenue.
• During a meeting last week with potential investors, bankers from Morgan Stanley and X CEO Linda Yaccarino highlighted the improving financial health of the social media platform.
• The executives reportedly discussed the interconnection between X and Elon Musk’s artificial intelligence startup, xAI, which was valued at $50 billion last year.

It’s almost like I’m good with money https://t.co/IPtVasDX6Z

— Elon Musk (@elonmusk) February 6, 2025

X’s 2024: 

• During the last full year prior to Musk’s takeover, Twitter reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of about $682 million and about $5 billion in revenue.
• In 2024, X had an EBITDA of about $1.25 billion and annual revenue of $2.7 billion.
• While X’s revenue is about half of what it used to be, the company’s costs are just about a quarter of what they were before.
• As per the WSJ, investors noted that these were better figures than they had anticipated.

Musk’s comments:

• In posts on X, Musk joked that X’s 2024 results suggest that “It’s almost like I’m good with money.”
• Musk also noted that there is still “room for improvement.”
• He also noted that “revenue should improve rapidly this year as the advertising boycott winds down.”

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