Investment giant Fidelity has written down the value of Elon Musk's shares in X (formerly known as Twitter Inc.) by a staggering 78.7% as of the end of August, and the social media platform Musk bought. That means the overall valuation is just $9.4 billion. 44 billion after attempting to withdraw from the agreement.
tech crunch report Just two years after Mr. Musk acquired the company for $44 billion, Fidelity has significantly lowered its value estimate for Company X. New disclosures from Fidelity's Blue Chip Growth Fund show that the company's X shares are now worth about $4.19 million, a significant decrease from the initial investment of $19.66 million.
This price reduction represents a 78.7 percent decrease in the value of Fidelity's X shares at the end of August. Based on this valuation, Fidelity currently values X at about $9.4 billion overall, just a fraction of the $44 billion Musk paid for the deal.
It's worth noting that this isn't the first time Fidelity has adjusted the value of X shares. As of July, the company had already reduced its value to approximately $5.5 million, indicating a consistent downward trend in the platform's valuation. .
Elon Musk's acquisition of X, then known as Twitter, was a highly publicized event that shocked the tech world. The deal, which was financed with a combination of equity and debt, was seen as a bold move by the billionaire entrepreneur to change the social media landscape. But Fidelity's steep price cuts raise questions about the platform's long-term viability and growth prospects under Musk's leadership.
Breitbart News reported in 2023 that Fidelity valued X at about a third of Musk's purchase price, just nine months after the acquisition.
Twitter is now worth just one-third of the $44 billion tech mogul Elon Musk paid for the social media giant, according to Fidelity Investments, Bloomberg reported. “Twitter's value has declined significantly since Mr. Musk's acquisition,” a Fidelity spokesperson said. “Recent valuations for our stock reflect this economic downturn.”
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
