Elon Musk’s X doubled its adjusted EBITDA since 2022 takeover
As per the WSJ, banks wrapped up the sale of $5.5 billion in debt backed by X. 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.
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.
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.
teslarati.com
Tom |
