Elon Musk acquired the social network previously known as Twitter for the second time in three years.
Musk, the richest person in the world, on March 28, used the start of artificial intelligence, Xai, to buy his social media platform in the All-Stock deal that is estimated at $ 33 billion, including debt. The value of the new joint entity, which will be called Xai Holdings, is more than $ 100 billion, except for debts again, Bloomberg News mentioned.
The deal was a surprise, but not necessarily shock: the two companies have worked together closely since the founding of XAI in 2023, including data license and distribution of products to Xai’s Chatbot, Groc. It also shares many investors themselves, and in some cases, employees share the area of offices in Palo Alto.
Musk said that the deal, which is estimated at 80 billion dollars, is estimated at a leap of about $ 50 billion in November, the last time the company Arise Money from investors.
The value of the $ 33 billion shares for X in the deal is the same as the value of its evaluation in recently closed financing circularAlso near the Musk price in 2022, which also calculates $ 12 billion of debt.
MUSK decision to integrate companies is a victory for X investors, who have endured more than two years of uncertainty since its acquisition that advertisers and users have abandoned the social network. The company has He struggled to develop her advertising business Or generate meaningful revenues from subscriptions. Most of that time, the Fidelity investor has achieved the share share in X between 60 % and 70 %.
The mix with XAI means that X investors now have shares in an emerging artificial intelligence company with the upper -minded upper side.
“The Future of Xai and X is overlapping,” Musk to publish On X in advertising the transaction. “Today, we take the step officially to combine data, models, account, distribution and talent. This mixture will open enormous potential by mixing the advanced artificial intelligence capacity of Xai with access to the enormous X.”
But the deal also raises a number of questions, including the basic basis: Was this deal actually necessary? Here are some of the most urgent unknown people about the new arrangement.
Why this deal?
Participants from Musk and other shareholders of Xai this week praised the integration, noting the ways that both companies will help each other. People mostly focus on the special data set that Xai will get via X and billions of user posts. It also provides fully controlling XAI on this data set and means that the company can refuse to license that data to any other artificial intelligence competitors. X, at the same time, Xai can help distribute Grok Chatbot and other products for millions of consumers.
The problem in this logic, however, is that all these alleged benefits were already present. XAI uses social network data to Groc train More than a year ago, Musk Grok has become users on X – and has been selling advanced versions of the product for X users via his outstanding subscription. Looking at the role of Musk that runs both companies, there should be no reason to worry that any of these benefits was in danger, or that X would suddenly start working with the Xai competitor.
What is the true value of X and Xai?
Musk says the deal is estimated at $ 33 billion, not 12 billion dollars. He also said that Xai is estimated at $ 80 billion. This is a deal in which Musk purchases one of his private companies with one of his private companies, both of whom were represented by the same bank, Morgan Stanley. This unique arrangement means that Musk can theoretically appoint any value that X and Xai want, as long as none of the investors revolted.
It does not seem to have a coincidence that Xai bought X for almost the same amount that the musk paid for that in October 2022, which means that X investors simply transfer their shares from one company to another. It is also interesting that the latest rating of Xai before the deal is about $ 50 billion, but now is $ 80 billion although there is no new financing in the deal, according to a person familiar with this arrangement. Musk, apparently, increased the value as part of the acquisition.
X spokesman X declined to comment on the details of the deal when it was announced.
Who will run Xai Holdings?
One of the biggest fans in the deal last week was the CEO of X Linda Yakarino, who to publish“The future cannot be brighter.” It is less clearly the meaning of integration for its future on top of the company. Musk has not announced any type of corporate structure for Xai Holdings, and it is not known to run the new joint entity, although Musk itself looks the most likely choice. Yaccarino can run X as a business unit within the new company, but the mergers are often chaotic and can require major changes in the role. We will have to wait and see how to integrate Musk tightly X and XAI operations to understand how things are running better.
How will this change the product of X?
It is not known immediately how this acquisition will affect X, at all, in part because the two companies have been deeply linked. Grok is already available on X, for example, users can pay more distinctive features associated with AI Chatbot. It seems that there is likely to have more GROK integration in X over time, including tools such as photo editing or sound assistant. However, this would have already been possible to look at The musk trend was heading With the two companies.
Will other social networks be obtained now?
Artificial intelligence companies were thirsty for any royal data groups while training their artificial intelligence systems and looking for ways to distinguish between chatting from competitors. Reddit Inc.For example, he has Licensed by user content to Google at Alphabet Inc. It makes hundreds of millions of dollars annually to license artificial intelligence. Other Amnesty International companies like Openai, Anthropic and Perplexity AI are possible to obtain other social networks to secure their unique data groups, according to Bloomberg Intelligence Mandeep Singhh. The confusion did not suggest Integration with Tiktok to us Kohl to maintain the Bytedance Ltd. In America.
“We believe that the smaller players in social media will actively search for alliances with large linguistic models, given the distinguished evaluation of Xai at $ 80 billion, which is more than the values of the joint market for Snap, Pinterest and Reddit,” Singh wrote.