Musk confirmed the news via a post on X, saying that it was an all-stock transaction, which valued xAI at $80 billion and X at $33 billion. He stated that X’s full value was $45 billion before being lowered by $12 billion in debt.

“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk added. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

xAI was founded in 2023 by Musk as a competitor to ChatGPT-maker OpenAI. The company’s flagship product is the AI assistant Grok, which has been integrated into X since its inception. xAI had its latest funding round in December when it raised $6 billion and reached a valuation of $45 billion.

Musk acquired Twitter in 2022, paying $44 billion for the social media platform. He introduced a series of changes to the platform, including changing its name to X, while also making a series of job cuts. The company’s valuation dropped to $10 billion in September according to a report by Fidelity Investments, but apparently saw a massive turnaround since then.

The post Elon Musk Sells Social Media Platform X to His Own AI Startup xAI in a $33 Billion Deal appeared first on theprimarymarket.com.

According to Bloomberg, a group of bankers led by Morgan Stanley contacted investors ahead of the planned sale that could take place as soon as next week. Morgan Stanley was one of the banks that lent Musk the money to complete the $44 billion buyout of X in 2022, along with Bank of America and Barclays.

They’re reportedly expecting to get 90 to 95 cents on the dollar, after contacting a small group of investors to assess their interest in the buyout. This marks the bank’s latest attempt to rid themselves of $13 billion of debt tied to Musk’s purchase of X, following a recent offload of about $1 billion to multiple investors in a private transaction.

X faced many changes since Musk took control of the social media platform in 2022, from the name change to massive layoffs that impacted thousands of people. The banks’ past attempts to sell the debt associated with the Twitter buyout led to significant losses, but there’s growing optimism surrounding the social media platform after Musk was appointed the Administrator of the Department of Government Efficiency in the U.S. Government.

The post Wall Street Banks Reportedly Gearing Up to Sell $3 Billion in X Loans appeared first on theprimarymarket.com.

The newest valuation is based on the recent disclosure report shared by Fidelity’s Blue Chip Growth Fund, which owns a stake in X. According to the report, the fund’s original investment of $19.66 million is now valued at $5.5 million.

Based on Fidelity’s projections, the X is now worth just $9.4 billion. Back in March, Musk himself said the company was worth $20 billion.

The sharp decline in X’s value is likely a result of the platform’s dwindling advertisement revenue, which accounts for more than 70% of its total revenue. It is estimated that X brought in $3.4 billion in ad revenue for 2023 compared to $4.4 billion in the year prior and $5 billion in 2021.

Lately, a large number of advertisers have decided to lower or cut entirely their spending on X advertisements due to concerns about the platform’s content. This led to X’s advertisement revenue in the first six months of 2024 to come at $744 million. Experts believe that the trend will likely continue in 2025.

X has attempted to soften the blow by employing various cost-cutting tactics. This included a series of layoffs and, more recently, the decision to move the company’s headquarters from San Francisco, California, to Bastrop, Texas.

The post X Loses 79% of Its Value, Supposedly Worth $9.4 Billion appeared first on theprimarymarket.com.

Moraes has requested X to suspend accounts that he deemed as a “threat” to Brazil’s democracy on several occasions in recent years. This resulted in a public back-and-forth between the judge and X’s CEO, Elon Musk, with Musk at one point stating he would reactivate previously suspended accounts. After Moraes opened an investigation revolving around Musk, the company announced it would respect the previous court orders.

Now, with X facing pressure to ban more accounts, the company made a decision to close its office in Brazil. Explaining the decision, X said Moraes made “threats” to arrest its legal representatives in the country if it doesn’t comply with his orders.

“As a result, to protect the safety of our staff, we have made the decision to close our operation in Brazil, effective immediately,” X shared on its official Government Affairs account.

X added that it will continue to make its social platform available for users in Brazil despite closing its office. It is estimated that Brazil is one of X’s biggest markets.

The post X to Cease its Operations in Brazil appeared first on theprimarymarket.com.

Courtney McMillian, who was responsible for Twitter’s compensation and benefits, and Ronald Cooper, Twitter’s operations manager, previously made a lawsuit against Musk, alleging that they didn’t receive appropriate severance when they were laid off. The lawsuit claimed that they and other fired Twitter staffers were owed three months of pay under the Employee Retirement Income Security Act (ERISA) while receiving only one month of pay.

Thompson ruled to dismiss the lawsuit, saying that ERISA doesn’t apply in this particular case because there was no “ongoing administrative scheme” after Musk’s takeover, while Twitter notified its staffers they would only receive cash payments in case of being laid off. The judge also added that the fired staffers can amend their complaint without claims related to ERISA.

This isn’t the only lawsuit from disgruntled ex-Twitter staffers who believe that they were shortchanged for severance Musk is dealing with. Two more lawsuits are currently underway, with one asking for $128 million in unpaid severance and the other one asking for $1 million. 

The post Court Rules That Elon Musk Doesn’t Need to Pay $500 Million in Severance to Fired Twitter Staffers appeared first on theprimarymarket.com.

According to the report, X executives have already reached out to potential partners that would help them implement the new feature. The Elon Musk-owned social media is currently looking for providers of “financial content, real-time stock data, and other features.”

Further details about X’s trading hub plans remain under wraps, with the company failing to provide comments when reached out to by Reuters.

Adding a trading hub would fit the plans that Musk laid out for the social media platform after acquiring it for $44 billion in October. At the time, Musk said that he plans to turn Twitter into a “super app” and compared it to Chinese WeChat. Besides being used for messaging and social media interaction, WeChat also has various other features, including mobile payments.

Back in April, X partnered up with the investment platform eToro to provide its users with real-time information about stocks and cryptocurrencies. The partnership also allows X users to access eToro’s trading platform with a single click if they wish to engage in trading. 

The post Social Media X (ex-Twitter) Wants to Add a Trading Hub to its App appeared first on theprimarymarket.com.

Following Elon Musk’s takeover of the social media platform last year, Twitter signed a multi-year contract with Google for the service in an effort to fight spam and protect the company’s accounts.

Currently, Twitter hosts some of its services on the Google Cloud server while housing others on Amazon’s Cloud platform. Still, the exact extent to which Twitter’s trust and safety teams are set to be impacted remains unclear.

According to reports, Twitter has been attempting to renegotiate its contract with Google Cloud since March. It has since been unable to reach an agreement.

In March, Twitter’s outstanding bills to Amazon Web Services led Amazon to withhold its advertising payments to the social media platform.

The post Twitter Refuses to Pay Google Cloud Bills, Jeopardising Trust appeared first on theprimarymarket.com.

In addition to affirming her commitment to the company, Yaccarino emphasized the importance of receiving feedback from users as a means of constantly improving the platform, calling this approach “vital to that future.”

“I’m here for all of it,” Yaccarino stated. “Let’s keep the conversation going and build Twitter 2.0 together!”

Joining Yaccarino after leaving her role as head of global advertising at NBCUniversal, Yaccarino is expected to work closely with Musk to help him achieve his future vision. Musk will continue to serve as the social media platform’s chief technology officer and executive chairman.

Musk laid off approximately 75% of Twitter’s workforce since acquiring the company in October last year. In addition to bolstering her workforce, Yaccarino will also need to address the advertiser exodus that Twitter has since faced, particularly after the uncertainty caused by Musk’s inconsistent content moderation standards and his own Tweets.

The post New Twitter CEO Releases First Statement After Securing Job appeared first on theprimarymarket.com.

Ross Gerber, president, and CEO at Gerber Kawasaki Wealth & Investment Management confirmed that a Musk representative reached out to him with an offer of more Twitter shares at the same price of $54.20 that Musk paid when he took the company public in October. Both Twitter and Musk have not yet responded to Reuters’ questions on the matter.

Following Musk’s new approach to regulating tweets and the company’s struggle to hit revenues and pay interest on the $13 billion debt that Musk took to acquire the company, advertisers have responded negatively, with many pulling out of Twitter.

In an effort to put money back into the company, Musk sold $3.6 billion worth of shares in Tesla earlier in the week. Last week, Tesla posted its biggest weekly loss since March 2020 as investors worry over Musks’ distraction with Twitter and the slowing electric vehicle economy.

The post Elon Musk Seeks New Funding for Twitter appeared first on theprimarymarket.com.

Musk sent a letter to Twitter stating his intent to complete the takeover for the originally agreed price of $54.20 per share. This immediately sent the Twitter stock surging from $42.60 close on Monday to $52.02 at one point on Tuesday.

Twitter later confirmed the new development in an official statement sent out by the company’s spokesperson. Musk himself also made it official on his Twitter account, tweeting that “Buying Twitter is an accelerant to creating X, the everything app.”

There are no specific details about the “X” app Musk mentions. However, reports indicate that the app should combine messaging features, social media, payment options, and more. The closest comparison to it is China’s WeChat.

Elon Musk made an offer of $44 billion for Twitter earlier this year, with his bid accepted by the company’s shareholders. However, Musk later tried to nix the deal, claiming that the platform had a bigger number of fake and spam accounts than the company was willing to reveal.

Twitter decided to handle the matter in court, filing a lawsuit to force Musk to complete the deal. The

the trial was set to begin in less than two weeks.

The post Elon Musk Changes His Mind, Makes an Offer to Buy Twitter Again appeared first on theprimarymarket.com.

Musk confirmed the news via a post on X, saying that it was an all-stock transaction, which valued xAI at $80 billion and X at $33 billion. He stated that X’s full value was $45 billion before being lowered by $12 billion in debt.

“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk added. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

xAI was founded in 2023 by Musk as a competitor to ChatGPT-maker OpenAI. The company’s flagship product is the AI assistant Grok, which has been integrated into X since its inception. xAI had its latest funding round in December when it raised $6 billion and reached a valuation of $45 billion.

Musk acquired Twitter in 2022, paying $44 billion for the social media platform. He introduced a series of changes to the platform, including changing its name to X, while also making a series of job cuts. The company’s valuation dropped to $10 billion in September according to a report by Fidelity Investments, but apparently saw a massive turnaround since then.

The post Elon Musk Sells Social Media Platform X to His Own AI Startup xAI in a $33 Billion Deal appeared first on theprimarymarket.com.

According to Bloomberg, a group of bankers led by Morgan Stanley contacted investors ahead of the planned sale that could take place as soon as next week. Morgan Stanley was one of the banks that lent Musk the money to complete the $44 billion buyout of X in 2022, along with Bank of America and Barclays.

They’re reportedly expecting to get 90 to 95 cents on the dollar, after contacting a small group of investors to assess their interest in the buyout. This marks the bank’s latest attempt to rid themselves of $13 billion of debt tied to Musk’s purchase of X, following a recent offload of about $1 billion to multiple investors in a private transaction.

X faced many changes since Musk took control of the social media platform in 2022, from the name change to massive layoffs that impacted thousands of people. The banks’ past attempts to sell the debt associated with the Twitter buyout led to significant losses, but there’s growing optimism surrounding the social media platform after Musk was appointed the Administrator of the Department of Government Efficiency in the U.S. Government.

The post Wall Street Banks Reportedly Gearing Up to Sell $3 Billion in X Loans appeared first on theprimarymarket.com.

The newest valuation is based on the recent disclosure report shared by Fidelity’s Blue Chip Growth Fund, which owns a stake in X. According to the report, the fund’s original investment of $19.66 million is now valued at $5.5 million.

Based on Fidelity’s projections, the X is now worth just $9.4 billion. Back in March, Musk himself said the company was worth $20 billion.

The sharp decline in X’s value is likely a result of the platform’s dwindling advertisement revenue, which accounts for more than 70% of its total revenue. It is estimated that X brought in $3.4 billion in ad revenue for 2023 compared to $4.4 billion in the year prior and $5 billion in 2021.

Lately, a large number of advertisers have decided to lower or cut entirely their spending on X advertisements due to concerns about the platform’s content. This led to X’s advertisement revenue in the first six months of 2024 to come at $744 million. Experts believe that the trend will likely continue in 2025.

X has attempted to soften the blow by employing various cost-cutting tactics. This included a series of layoffs and, more recently, the decision to move the company’s headquarters from San Francisco, California, to Bastrop, Texas.

The post X Loses 79% of Its Value, Supposedly Worth $9.4 Billion appeared first on theprimarymarket.com.

Moraes has requested X to suspend accounts that he deemed as a “threat” to Brazil’s democracy on several occasions in recent years. This resulted in a public back-and-forth between the judge and X’s CEO, Elon Musk, with Musk at one point stating he would reactivate previously suspended accounts. After Moraes opened an investigation revolving around Musk, the company announced it would respect the previous court orders.

Now, with X facing pressure to ban more accounts, the company made a decision to close its office in Brazil. Explaining the decision, X said Moraes made “threats” to arrest its legal representatives in the country if it doesn’t comply with his orders.

“As a result, to protect the safety of our staff, we have made the decision to close our operation in Brazil, effective immediately,” X shared on its official Government Affairs account.

X added that it will continue to make its social platform available for users in Brazil despite closing its office. It is estimated that Brazil is one of X’s biggest markets.

The post X to Cease its Operations in Brazil appeared first on theprimarymarket.com.

Courtney McMillian, who was responsible for Twitter’s compensation and benefits, and Ronald Cooper, Twitter’s operations manager, previously made a lawsuit against Musk, alleging that they didn’t receive appropriate severance when they were laid off. The lawsuit claimed that they and other fired Twitter staffers were owed three months of pay under the Employee Retirement Income Security Act (ERISA) while receiving only one month of pay.

Thompson ruled to dismiss the lawsuit, saying that ERISA doesn’t apply in this particular case because there was no “ongoing administrative scheme” after Musk’s takeover, while Twitter notified its staffers they would only receive cash payments in case of being laid off. The judge also added that the fired staffers can amend their complaint without claims related to ERISA.

This isn’t the only lawsuit from disgruntled ex-Twitter staffers who believe that they were shortchanged for severance Musk is dealing with. Two more lawsuits are currently underway, with one asking for $128 million in unpaid severance and the other one asking for $1 million. 

The post Court Rules That Elon Musk Doesn’t Need to Pay $500 Million in Severance to Fired Twitter Staffers appeared first on theprimarymarket.com.

According to the report, X executives have already reached out to potential partners that would help them implement the new feature. The Elon Musk-owned social media is currently looking for providers of “financial content, real-time stock data, and other features.”

Further details about X’s trading hub plans remain under wraps, with the company failing to provide comments when reached out to by Reuters.

Adding a trading hub would fit the plans that Musk laid out for the social media platform after acquiring it for $44 billion in October. At the time, Musk said that he plans to turn Twitter into a “super app” and compared it to Chinese WeChat. Besides being used for messaging and social media interaction, WeChat also has various other features, including mobile payments.

Back in April, X partnered up with the investment platform eToro to provide its users with real-time information about stocks and cryptocurrencies. The partnership also allows X users to access eToro’s trading platform with a single click if they wish to engage in trading. 

The post Social Media X (ex-Twitter) Wants to Add a Trading Hub to its App appeared first on theprimarymarket.com.

Following Elon Musk’s takeover of the social media platform last year, Twitter signed a multi-year contract with Google for the service in an effort to fight spam and protect the company’s accounts.

Currently, Twitter hosts some of its services on the Google Cloud server while housing others on Amazon’s Cloud platform. Still, the exact extent to which Twitter’s trust and safety teams are set to be impacted remains unclear.

According to reports, Twitter has been attempting to renegotiate its contract with Google Cloud since March. It has since been unable to reach an agreement.

In March, Twitter’s outstanding bills to Amazon Web Services led Amazon to withhold its advertising payments to the social media platform.

The post Twitter Refuses to Pay Google Cloud Bills, Jeopardising Trust appeared first on theprimarymarket.com.

In addition to affirming her commitment to the company, Yaccarino emphasized the importance of receiving feedback from users as a means of constantly improving the platform, calling this approach “vital to that future.”

“I’m here for all of it,” Yaccarino stated. “Let’s keep the conversation going and build Twitter 2.0 together!”

Joining Yaccarino after leaving her role as head of global advertising at NBCUniversal, Yaccarino is expected to work closely with Musk to help him achieve his future vision. Musk will continue to serve as the social media platform’s chief technology officer and executive chairman.

Musk laid off approximately 75% of Twitter’s workforce since acquiring the company in October last year. In addition to bolstering her workforce, Yaccarino will also need to address the advertiser exodus that Twitter has since faced, particularly after the uncertainty caused by Musk’s inconsistent content moderation standards and his own Tweets.

The post New Twitter CEO Releases First Statement After Securing Job appeared first on theprimarymarket.com.

Ross Gerber, president, and CEO at Gerber Kawasaki Wealth & Investment Management confirmed that a Musk representative reached out to him with an offer of more Twitter shares at the same price of $54.20 that Musk paid when he took the company public in October. Both Twitter and Musk have not yet responded to Reuters’ questions on the matter.

Following Musk’s new approach to regulating tweets and the company’s struggle to hit revenues and pay interest on the $13 billion debt that Musk took to acquire the company, advertisers have responded negatively, with many pulling out of Twitter.

In an effort to put money back into the company, Musk sold $3.6 billion worth of shares in Tesla earlier in the week. Last week, Tesla posted its biggest weekly loss since March 2020 as investors worry over Musks’ distraction with Twitter and the slowing electric vehicle economy.

The post Elon Musk Seeks New Funding for Twitter appeared first on theprimarymarket.com.

Musk sent a letter to Twitter stating his intent to complete the takeover for the originally agreed price of $54.20 per share. This immediately sent the Twitter stock surging from $42.60 close on Monday to $52.02 at one point on Tuesday.

Twitter later confirmed the new development in an official statement sent out by the company’s spokesperson. Musk himself also made it official on his Twitter account, tweeting that “Buying Twitter is an accelerant to creating X, the everything app.”

There are no specific details about the “X” app Musk mentions. However, reports indicate that the app should combine messaging features, social media, payment options, and more. The closest comparison to it is China’s WeChat.

Elon Musk made an offer of $44 billion for Twitter earlier this year, with his bid accepted by the company’s shareholders. However, Musk later tried to nix the deal, claiming that the platform had a bigger number of fake and spam accounts than the company was willing to reveal.

Twitter decided to handle the matter in court, filing a lawsuit to force Musk to complete the deal. The

the trial was set to begin in less than two weeks.

The post Elon Musk Changes His Mind, Makes an Offer to Buy Twitter Again appeared first on theprimarymarket.com.