Elon Musk’s Twitter Acquisition Takes a Hit as Fidelity Marks Down Value
Mutual fund Fidelity, which owns stake in the social media platform previously known as Twitter, now marked down the value of its shares by 71.5% since Elon Musk’s purchase of the platform, according to a disclosure obtained by Axios.
Musk acquired the social media platform for $44 billion in October 2022 and rebranded it as X in July 2023. However, Fidelity’s estimate suggests that the platform is now valued at approximately $12.5 billion, a significant decrease from the initial acquisition.
The downturn in value is not the only issue Musk has faced since taking over the platform. The number of monthly users on X has dropped by 15% in the first year under Musk’s ownership, with concerns over a rise in hate speech on the platform.
Furthermore, there have been staff cuts and reduced moderation on the platform, leading to warnings from the European Union over the high ratio of disinformation posts. Major companies have also pulled advertising from X after Musk endorsed an antisemitic conspiracy theory, prompting a backlash from the public and businesses alike.
Musk, who is the world’s richest man, has stated that he acquired Twitter to “try to help humanity.” However, his decisions since taking over the platform have generated controversy and raised questions about his management of X.
Despite the challenges, Musk has been vocal about his intentions for the platform, reinstating banned users and making changes to the platform’s structure. However, his actions have also drawn criticism, particularly for allowing figures such as former president Donald Trump and right-wing conspiracy theorist Alex Jones back onto the platform.
This marks yet another development in Musk’s eventful year, as he continues to make headlines for his high-profile business ventures and controversial statements. As the situation with X continues to develop, it remains to be seen how Musk will navigate the challenges and controversies surrounding the platform.