�Elon Musk's $44 billion acquisition of Twitter, now rebranded as X, has led to significant financial challenges and legal scrutiny.�
The Wall Street Journal
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Latest news & breaking headlines
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Reuters
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📉 Financial Impact
Since the acquisition, X's valuation has declined sharply. In October 2023, Fidelity estimated the company's value at $19 billion, a 55% decrease from the purchase price. By October 2024, Fidelity's estimate had dropped to $9 billion, reflecting a 79% decline . The platform has also experienced a 30% drop in active users, a 60% decline in advertising revenue, and a 14% decrease in website traffic .�
Wikipédia, l'encyclopédie libre
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Wikipedia
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Wikipedia
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Wikipedia

💼 Debt and Bank Exposure
To finance the acquisition, Musk secured $13 billion in loans from major banks, including Morgan Stanley and Bank of America. These institutions struggled to offload the debt due to market conditions and concerns over X's financial performance. However, by early 2025, banks had successfully sold the remaining $1.2 billion of this debt at a 2% discount, marking the end of their exposure to the deal .�
Reuters
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The Wall Street Journal
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Reuters
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The Wall Street Journal
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Reuters
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Reuters
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⚖️ Legal Challenges
Musk faces a new court battle with shareholders who allege they were misled by his statements during the acquisition process. These shareholders claim that Musk's tweets suggesting the deal was jeopardized due to fake accounts led to a drop in Twitter's stock price, causing financial harm .�
Financial Times

🔄 Recent Developments
Despite early setbacks, Musk has initiated a turnaround strategy for X. In 2023, he launched xAI, granting it a 25% stake in X. The merger of X and xAI, valued at over $100 billion, aims to transform X into an "everything app" . Additionally, Musk's political connections have helped restore some advertiser confidence, leading to a modest recovery in ad revenue .�
The Wall Street Journal
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The Wall Street Journal
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Elon Musk Faces Legal and Financial Challenges Post-Twitter Acquisition

Financial Times
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