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

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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.

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

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.

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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