On March 29th, Elon Musk, the CEO of X.com (earlier called Twitter) announced that the social media platform has been acquired by his AI company, called xAI.
What does an all-stock deal mean?
All stock deal means that the shareholders of X will only get shares of xAI as compensation for their shareholding. No money will actually be paid to X or its shareholders for the acquisition.
X was valued at 45 billion less 12 billion debt = 33 billion dollars. Musk acquired X at 44 billion dollars.
xAI is valued at $80 billion. xAI is a pure AI company. For comparison, Open AI, one of the world’s largest pure AI companies, was valued at $157 billion in the most recent round of funding in October 2024.