2023-05-31 05:00:00
Twitter is now worth only a third of what Elon Musk paid for the social media platform, according to Fidelity, which recently reduced the value of his stake in the company.
Musk, who has acknowledged overpaying for Twitter, offered employees new stock deals earlier this year that valued the company at US$20,000 million. It is not clear how Fidelity arrived at its new valuation or if it receives non-public information from the company.
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Fidelity first reduced the value of its Twitter stake in November, by 44% of the purchase price. This was followed by further sales in December and February.
Twitter has struggled financially since Musk took over. After saddled the company with $13 billion in debt, Musk’s erratic decision-making and challenges with content moderation caused viewers to revenue fell 50%Musk said in March. So far, he has failed to get off the ground an attempt to recoup that revenue by selling Twitter Blue subscriptions. At the end of March, less than 1% of Twitter’s monthly users had signed up.
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Twitter did not specifically respond to a request for comment.
How much did Musk lose?
Musk’s investment in Twitter is now worth US$8.8 billion, according to the Bloomberg Billionaires Index, which uses Fidelity’s valuation to calculate the value of your stake. Musk invested more than US$25,000 million to acquire an estimated 79% stake in the company last year.
the last sale erases about $850 million of Musk’s $187 billion fortune, according to the index. Despite Twitter’s woes, Musk’s wealth has increased by more than $48 billion this year, largely due to a 63% rise in Tesla Inc’s stock price.
LM / ED
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