devotion to truth has reduced the value of its equity stake in TwitterIt shows that the social media platform is now only worth one-third Elon Musk paid for it.
In October last year, musk Bought Twitter for $44 billion. He has since admitted that he paid too much for the micro-blogging platform. Recently, he revealed that Twitter is now worth less than half of what he initially paid for it.
Fidelity was part of the investors who helped Musk finance the Twitter acquisition. The investment firm’s monthly portfolio valuation shows Twitter is currently valued at $15 billion, representing 33% of its purchase price in October.
It is not clear how Fidelity reached its latest, reduced valuation or whether it had access to any confidential company information.
Fidelity initially reduced the value of its Twitter investment to 44% of the purchase price in November. Since then, additional markdowns have occurred in December and February.
The investment, which now belongs to Musk’s X Holdings, was valued at approximately $6.55 million at the end of April.
Since Musk’s acquisition, Twitter has faced financial struggles. Musk’s decision-making style and difficulties with content moderation left the company $13 billion in debt after a 50% drop in advertising revenue.
Although Twitter tried to recover revenue by offering twitter blue Subscriptions, the response has been poor, with less than 1% of monthly users signing up as of March.
According to Bloomberg, Musk’s investment in Twitter is currently worth $8.8 billion, based on Fidelity’s valuation of the holding. Musk acquired an estimated 79% stake in the company at a cost of over $25 billion.
Quick, Linda Yacarino will take over the role of Twitter and X Corp.Kasturi to CEO.
In October last year, musk Bought Twitter for $44 billion. He has since admitted that he paid too much for the micro-blogging platform. Recently, he revealed that Twitter is now worth less than half of what he initially paid for it.
Fidelity was part of the investors who helped Musk finance the Twitter acquisition. The investment firm’s monthly portfolio valuation shows Twitter is currently valued at $15 billion, representing 33% of its purchase price in October.
It is not clear how Fidelity reached its latest, reduced valuation or whether it had access to any confidential company information.
Fidelity initially reduced the value of its Twitter investment to 44% of the purchase price in November. Since then, additional markdowns have occurred in December and February.
The investment, which now belongs to Musk’s X Holdings, was valued at approximately $6.55 million at the end of April.
Since Musk’s acquisition, Twitter has faced financial struggles. Musk’s decision-making style and difficulties with content moderation left the company $13 billion in debt after a 50% drop in advertising revenue.
Although Twitter tried to recover revenue by offering twitter blue Subscriptions, the response has been poor, with less than 1% of monthly users signing up as of March.
According to Bloomberg, Musk’s investment in Twitter is currently worth $8.8 billion, based on Fidelity’s valuation of the holding. Musk acquired an estimated 79% stake in the company at a cost of over $25 billion.
Quick, Linda Yacarino will take over the role of Twitter and X Corp.Kasturi to CEO.