The value of X, formerly known as Twitter, continues to decline.
A new disclosure report from Fidelity’s Blue Chip Growth Fund, which owns shares in social media companies, has recalibrated the value of its holdings. And according to Fidelity’s calculations, the site is worth less than 25% of the $44 billion Musk paid.
Fidelity invested $19.66 million when Musk bought Twitter. As of the end of July, those shares were worth just $5.5 million, he said.
This brings Company X’s total valuation to $9.4 billion.
Since X is not a publicly traded company, Fidelity’s disclosure report is one of the best ways for onlookers to see the value of a social media site.
Last year, the site brought in an estimated $2.5 billion in ad revenue, roughly half of what it would earn in 2022. Advertising sales account for 70% to 75% of X’s total revenue.
Due to worsening financial conditions, the company recently closed its San Francisco headquarters and relocated to Texas. Employees who remain in California will be forced to move to smaller offices outside the city.
Mr. Musk is trying to boost morale by promising stock grants (if employees can prove their worth with a memo). But employees remain skeptical as other promises have also been broken.
Fidelity is not the only partial owner of Company X. Bill Ackman and Sean “Diddy” Combs, who is currently in prison awaiting trial on sex trafficking and sexual abuse charges, also own stock in the company, according to an August filing. It became clear.
Fidelity lowered Company X’s valuation in March, following a similar reduction in January. With the latest price cuts, Fidelity has reduced the value of its X holdings by a total of 78.7%.