In 2022, Elon Musk acquired Twitter for a whopping $44 billion and began a grand undertaking to transform the network into a new “free speech” service called X.
At the same time, not all of Twitter’s reboot efforts have been successful. Some new features worked with errors, and the launch of new subscriptions led to the proliferation of fake news and trolls on social media. And the billionaire’s own statements, often highly controversial, didn’t appeal to many advertisers — Apple and Disney disappeared on Twitter last year (and Musk has since used them). was accused of intentional boycott and “sent to hell” (which is a more reasonable translation).
All these events are also impacting profits, especially corporate value. Considering the original estimate of $44 billion given by Musk at the time of the acquisition, it is now down a catastrophic 79%, according to the latest report. Fidelity data (via TechCrunch).
Fidelity Investments is a U.S. financial services holding company that backed Musk’s acquisition of Twitter (its current stake in the social network is estimated to be worth about $4.19 million).
Background: Fidelity originally invested $19.66 million in Twitter (through its Blue Chip Fund), valuing X shares at approximately $5.5 million in early August). The current 78.7% decline means the company currently values X at approximately $9.4 billion.
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