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Elon Musk’s X is the latest in a series of valuation cuts by Fidelity since Musk acquired the social media platform formerly known as Twitter in 2022, Fidelity said. It is said to be worth just over a fifth of the $44 billion he paid for the deal.
Fidelity has repeatedly reduced the value of its shares in social media companies since Musk took office. [+] Get.
Copyright 2019 Associated Press. Unauthorized reproduction is prohibited.
important facts
According to Fidelity’s recent disclosures, Fidelity’s X shares are currently worth approximately $4.19 million, and X’s value is estimated at $9.4 billion.
Fidelity’s original $19.6 million holding prior to Musk’s acquisition of X in October 2022 had fallen by nearly 79% as of the end of August, the company said.
The investment firm has cut the value of the stock multiple times this year. Despite raising its forecast by 11% in December, Fidelity cut the stock’s value by 10.2% in January and another 5.7% in February.
X did not immediately respond to a request for comment from Forbes.
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Forbes rating
According to our latest estimates, Musk is the richest person in the world, with a total fortune of $269.8 billion.
big number
24 billion dollars. That’s the combined value of Company X’s eight largest investors since Musk acquired it on September 1, according to the Washington Post.
Main background
Musk acquired the then-Twitter Inc. in October 2022 after a lengthy deal process that included suing Musk for trying to back out of his $44 billion offer. Musk said the company’s revenue has fallen by 50% since the Musk acquisition due to a “significant decline” in advertising. While rebranding Twitter to X, Musk announced a series of changes to the platform. These include a premium subscription service that gives users verification badges, the ability to edit posts, and prioritized rankings in conversations and searches. These changes prompted a backlash from users who claimed that parody accounts could trick users by paying verification fees.
tangent
According to reports, Musk requires Company X employees to write a one-page report detailing their contributions to the company before they can use their stock options. According to The Verge, he previously told employees that their stock could be cashed out periodically, just like SpaceX employees do.
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Forbes Fidelity values Twitter at about $15 billion – one-third of Musk’s sticker price Written by: Antonio Pequeño IV
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