Twitter is now worth just a third of the $44 billion that tech mogul Elon Musk paid the social media giant about nine months ago, according to a Fidelity Investments report. Fidelity backed the Musk buyout and owns a stake in Twitter.
bloomberg report Twitter is currently worth just a third of the $44 billion that tech mogul Elon Musk paid the social media giant, according to Fidelity Investments. A Fidelity spokeswoman said the value of Twitter has declined significantly since Musk’s acquisition. “The recent valuation of our stock reflects this economic downturn.”
Elon Musk, who paid Twitter $44 billion (including $33.5 billion in stock), has publicly admitted he paid too much for the service. “Twitter is worth less than half what I paid for,” Musk confessed in his recent statement.
In November, Fidelity reduced its Twitter holding value to 44% of the original purchase price. The platform then experienced additional price cuts in his December and his February, highlighting ongoing financial difficulties.
Twitter has been grappling with financial troubles since Musk acquired it. Under Musk’s management, the company has $13 billion in debt. As Musk revealed in March, his shaky decision-making and content management difficulties have led to a 50% drop in ad revenue. Selling Twitter Blue subscriptions to make up for lost revenue has so far been unsuccessful. At the end of March, less than 1% of Twitter’s monthly users were registered.
In April, Mr. Musk publicly admitted that legal pressure was the driving force behind his acquisition of the social media company. The latest price cut will take about $850 million from Musk’s $187 billion fortune, according to the Bloomberg Billionaires Index. Musk’s fortune has increased by more than $48 billion this year, largely due to a 63% rise in Tesla’s stock.
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Lucas Nolan is a Breitbart News reporter who covers free speech and online censorship issues. follow him on twitter @LucasNolan
