October 1, 2024 03:50 PM (IST)
Elon Musk’s X (formerly Twitter) is currently valued at $9.4 billion, just 25% of the $44 billion he paid for it. Fidelity’s holdings in X shares decreased to $5.5 million.
Elon Musk bought X back when it was called Twitter, but what he has to worry about is the social media platform’s continued decline in value. A new report from Fidelity’s Blue Chip Growth Fund, which owns a stake in Company – Less than 25% of the $44 billion paid by Mr. Musk. For that.
Elon Musk’s X is currently valued at $9.4 billion, well below the acquisition cost of $44 billion. Fidelity’s investments lost 78.7% of their value and advertising revenue was cut in half. Company X also moved its headquarters from San Francisco to Texas due to employee changes. (Reuters)
When Elon Musk bought Twitter, Fidelity invested $19.66 million, but those shares are now worth just $5.5 million, giving Company X a total valuation of $9.4 billion.
Last year, X brought in an estimated $2.5 billion in ad revenue, roughly half of what it would earn in 2022. At the time, advertising sales accounted for 70% to 75% of X’s total revenue.
This comes after Company X recently closed its San Francisco headquarters and relocated to Texas, while employees remaining in California were forced to move to smaller offices outside the city. It is being However, Elon Musk tried to boost morale by promising stock subsidies.
Fidelity lowered Company X’s valuation in March, following a similar reduction in January. Including this time, Fidelity has reduced the value of its X holdings by a total of 78.7%.
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