Elon Musk's acquisition of X for $44 billion in 2022 primarily relied on bank loans, which investors hesitated to purchase due to concerns over the platform's viability. Recently, however, Musk's close relationship with the Trump administration has revitalized investor confidence, leading banks to successfully sell a substantial portion of the previously held debt. Advertisers have notably returned to X, bolstering revenue by 21% from the previous month, further easing the financial burden borne by banks and Musk regarding the debt accrued during the acquisition.
When banks initially held onto Musk's debt from acquiring X due to investor reluctance, a recent turnaround allowed them to sell off significant portions at improved terms.
Musk's close ties to the Trump administration have been perceived as influencing investor confidence in X, as the platform has become integral for disseminating information on government initiatives.
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