Elon Musk’s Twitter deal looked like a $44 billion disaster. Now, his investors stand to make a 200% return—thanks to a brilliant (and controversial) M&A move

Elon Musk's acquisition of Twitter, now known as X, for $44 billion, initially perceived as a financial misstep, is now projected to yield a nearly 200% return for his investors. This turnaround is attributed to a strategic merger and acquisition maneuver where X shareholders now collectively own 5% of Musk's rocket company, SpaceX. Bloomberg reports that this stake in SpaceX, which is anticipated to go public with a valuation of $100 billion, is the primary driver of the investor returns. Reuters recently estimated SpaceX's IPO valuation at $1.75 trillion, which would still represent the largest stock market debut by an American company. Notable investors who have seen this significant return include Larry Ellison, Bill Ackman's charitable foundation, and Andreessen Horowitz. Despite X's diminished user base and sociopolitical standing following Musk's acquisition and renaming, the financial success for his backers has been secured through this complex M&A strategy involving SpaceX and Musk's artificial intelligence venture, xAI.