Fidelity Investments has slashed the value of its stake in X, the social media platform formerly known as Twitter, which has sharply declined since its acquisition by billionaire tech mogul Elon Musk in October 2022. It was revealed that there was a decrease in
According to recent disclosures from the investment firm (reported by TechCrunch), Fidelity’s X shares are now worth about $4.19 million, equating to a total company value of about $9.4 billion. The numbers represent a significant drop from the $19.6 million Fidelity originally invested in its holdings before Musk’s acquisition, reducing its value by nearly 79%.
The news comes after Fidelity repeatedly sought to reduce its stake throughout the year. The company lowered its stock price by 10.2% in January and another 5.7% in February. These price reductions came despite an 11% increase in December 2022 valuation expectations.
The platform has experienced significant turmoil since Musk acquired X for $44 billion. Company X’s revenue plummeted by 50% due to what Musk described as a “huge drop in advertising.” The company has also faced criticism from users over feature changes, including the launch of a premium subscription service that offers verification badges and post-edit permissions.
Further issues and criticism have arisen over claims that the platform is amplifying the spread of misinformation, including misleading information about presidential election preparations.
The financial damage to X investors is staggering. The platform’s eight largest investors have lost a combined $24 billion in value since Musk’s acquisition, according to the Washington Post.
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