Twitter has not been Elon Musk’s finest purchasing choice so far. He bought the platform for $44bn back in October 2022, and now one of the last remaining investors in the social platform has confirmed that the company has lost around two-thirds of its original value.
The Guardian reports that Fidelity, an investment company that holds a stake in Twitter, has confirmed that its initial $20m investment is now only worth $6.6m. That puts Twitter’s total value at around $14.75bn – an incredible $30bn loss in the space of only nine months.
Where’s it all gone?
Fidelity disclosed the information in its quarterly performance reporting, as a part of the blue-chip growth fund – an initiative that invests in a range of US and international companies with a focus on, crucially, ‘stable valuations.’
When Musk took over Twitter, he offered to value Fidelity’s stake in the company at $20m. The Guardian says that “That valuation came with an incentive for Musk to lowball the estimate, however, because the higher it was, the more expensive employee remuneration would be.”
Musk has had a rough time with Twitter since he bought the platform, in some cases becoming a laughing stock in the financial sector. He’s laid off massive amounts of his workforce and faced backlash from key staff and even celebrities over his handling of the platform.
To try and make Twitter some money, Musk introduced Twitter Blue – although that just created its own problems, with users creating targeted block lists for verified accounts. Most recently, Musk pulled out of a European misinformation group, jeopardizing the company’s future in the continent.
While Musk claims that since he’s taken over the number of Bot accounts and the amount of misinformation has decreased, some believe otherwise – and now it looks like the valuations of his company are falling by the second.
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