June 1, 2023
According to investment company Fidelity, Twitter’s valuation has dropped for the third time since Elon Musk took control in October of last year.
According to Fidelity’s most recent analysis, Twitter is currently worth only one-third of the astronomical $44 billion price tag paid by Musk during the acquisition. This steep drop has harmed Fidelity’s Blue Chip Growth Fund, which invested $8.63 million in Twitter in November, representing only 44 percent of its initial stake. By January 2023, the value of Fidelity’s shares had dropped to $7.8 million, and by late April, it had dropped even lower to $6.5 million.
Interestingly, Musk himself admitted in March that the company’s value had considerably declined, valuing it at less than half of what he first paid. Legal issues, including claims of unpaid invoices to vendors and workers, have compounded the situation. Twitter’s recent reduction measures, bugs, breakdowns, and strained relationships with advertisers have all contributed to the company’s downturn.
The withdrawal of numerous large advertisers has also harmed Musk’s acquisition goals, with Fidelity lowering the value of its share by 56% in March alone. According to Bloomberg, Twitter’s current worth is around $8.8 billion, indicating the extent of the depreciation. Furthermore, this significant fall erodes Musk’s personal net worth, with Bloomberg projecting a loss of around $850 million, bringing his total value to $187 billion.
The sources for this piece include an article in TheRegister.
