Since his takeover of then-Twitter in 2022, Mashable has reported that X's user base has declined, fleeing for alternatives like Bluesky, especially after the 2024 U.S. presidential election. Advertisers have been no different, with the trend of companies removing ads on X expected to continue this year.

Musk told employees about the controversial social network's financial struggles earlier this month, as US banks look to find buyers for the company's mammoth debt pile.

As Musk referenced in his email, the report says the banks hope to use the narrative of Musk’s link to Donald Trump, as some unnamed investors may be interested in buying based on a belief that its financials are on the way up.

Banks are hoping to sell the X debt at around 90 to 95 cents on the dollar.

Wall Street banks are preparing to sell a big portion of debt holdings in social media platform X, the Wall Street Journal reported on Friday, citing people familiar with the matter. Bankers at Morgan