Another valuation cut from X/Twitter shareholder shows remarkable fall in platform’s market value since Elon Musk takeover
A financial institution has issued another valuation writedown of its shareholding in Elon Musk’s X (formerly known as Twitter).
Mutual fund Fidelity owns a stake in the social media platform, and has once gain marked down the value of its shares, in disclosure obtained by Axios.
The Fidelity writedown shows that the social media platform has lost 71 percent of its value since it was bought by Elon Musk.
In June 2023 Fidelity had slashed its estimate of Twitter’s value, and suggested that Twitter had lost a staggering two thirds of its value since the Musk takeover.
Now six months later the disclosure obtained by Axios shows that Fidelity has marked down the value of its shares by 71.5 percent since Musk’s purchase.
What followed was over a year of chaos, as Musk axed 80 percent of the Twitter workforce, courted lawsuits over non payment of bills and severance payoffs, endorsed an antisemitic conspiracy theory, and has overseen a surge of misinformation and hate speech on the platform that has scared off many advertisers.
The number of monthly users of X has also reportedly dropped by 15 percent in the first year since Musk’s takeover.
Fidelity’s new estimate reportedly places the value of X at approximately $12.5bn – a far cry from the $44 billion purchase price that Musk paid.
Fidelity’s revised valuation of X came from a disclosure which ran to the end of November 2023, Axios reported.