Fidelity has reduced the value of its stake in X Holdings, the parent company of the platform formerly known as Twitter, by 71.5 percent since Elon Musk acquired the company in October 2022.
The investment firm slashed Company X's valuation by about 10.7% in November alone, from an estimated $6.3 million at the end of October to just under $5.6 million by the end of next month, according to recent filings.
Social media companies faced several scandals at the end of the year. Musk faced renewed accusations of anti-Semitism in November after appearing to endorse posts promoting anti-Semitic conspiracy theories.
Shortly after, the left-leaning media watchdog group Media Matters for America issued a series of reports saying it found ads for mainstream brands running next to pro-Nazi and white supremacist content on X. Announced.
As major companies halted ad spending on the platform, Mr. Musk slammed advertisers, telling them to “get rid of themselves.”
“If somebody tries to blackmail me with advertising, if somebody tries to blackmail me with money, get desperate,” he told the New York Times' Dealbook Summit in late November. “Give yourself away. Is it obvious? I hope so.”
The uproar punctuated a year filled with setbacks and scandals for the billionaire owner of Tesla and SpaceX. Musk started the year still reeling from a similar exodus of advertisers after his surprise acquisition of Twitter in October 2022.
Even as Musk tries to lure advertisers back to the platform, he continues to make controversial changes to X, publicly clashing with watchdog groups that monitor hate speech and anti-Semitism, and saying that It faced intense scrutiny from the European Union for its apparent failure to address the issue. During the conflict between Israel and Hamas.
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