Elon Musk-owned X (formerly Twitter) has lost more than a whopping 71 per cent of its value since the tech mogul acquired it in October 2022.
This piece of vital information has been shared by Fidelity. According to the asset manager (via AXIOS), X is now worth 71.5 per cent less than when Musk bought it.
Notably, the 52-year-old billionaire paid $44 billion to take over Twitter. It is also worth noting this is not the first time Fidelity has marked down the value of its shares in X Holdings.
Despite owning an equity stake in X, the mutual fund giant has been routinely lowering the stake’s value since Musk’s acquisition, according to a Reuters report.
NEW:
The current value of Twitter (X) is determined as 19 billion dollars.
One year ago Elon Musk paid $44 billion to purchase this platform.
Let that sink in. pic.twitter.com/PPrGLsOlny
— Republicans against Trump (@RpsAgainstTrump) October 30, 2023
For instance, Fidelity estimated X to be only worth about $15 billion last year. That’s a third of what Musk had paid, Bloomberg reported. In October, Bloomberg reported that the value of X has dropped to $19 billion.
A Rocky Year For X And Its Advertiser Relationships
In November, X saw big brands like IBM and Disney pausing the paid ad campaigns on the once-iconic social media website after Musk allegedly endorsed an antisemitic post.
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
— Elon Musk (@elonmusk) July 15, 2023
In fact, Musk admitted in an X post that the company was in a rough financial spot due to a major dip in its advertising revenue. “We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load,” Musk wrote.
While Musk later apologized for the antisemitic post, he slammed the advertisers for fleeing the company.
“If somebody is going to try to blackmail me with advertising? Blackmail me with money? Go f–k yourself. Go. F–k. Yourself,” Musk said in an interview at The New York Times Dealbook Summit in November.
However, he latest acknowledged that the advertiser boycott could “kill the company”. During the same event, Musk said: “What this advertising boycott is going to do, it’s gonna kill the company. And the whole world will know that those advertisers killed the company.”
