Worth of X has dipped by 71% post Musk’s takeover, Fidelity estimates
Believe it or not, current worth of X (the social media platform formerly known as Twitter), is 71% lower compared to its worth at the time of its takeover by Elon Musk in late 2022, according to Fidelity. The investment group made this disclosure precarious for Musk on Monday. This is the second time it dropped the valuation of X this financial year, Axios reports. Musk had acquired the social media giant for whopping $44 billion.
Most ironically, Fidelity was part of the investment group that assisted Musk in taking over Twitter in a deal comprising of $33.5 billion in equity, with the rest financed with debt to convert it (twitter) into a privately held company after the deal closed in October of the year 2022. Twitter (now X) and Fidelity did not immediately reply to requests for comment from FOX Business.
Musk had been extremely critical of Twitter before he acquired and renamed the company, arguing that twitter posed a grave threat to democracy and civilization itself. He contended that the platform had been busy propagating a left-wing “mind virus” due to the basic prejudice of the company’s leadership and employee base.
Musk sacked thousands upon thousands of employees in the initial months of his leadership at X, and he has maintained a highhanded attitude toward advertisers and threats to pull away from the social media platform. “What this advertising boycott is going to do is, it is going to kill the company,” Musk said. “And the whole world will know that those advertisers killed the company.”
Musk didn’t hold himself back even a wee bit while responding to Disney CEO Bob Iger’s assertion that Disney could pull advertising from the platform. “Don’t advertise. If someone is going to try and blackmail me with advertising? Blackmail me with money? Go f— yourself,” Musk stated, adding: “Go f— yourself, is that clear? Hey Bob, if you’re in the audience. That’s how I feel, don’t advertise.”
X has been struggling to retain advertisers since Musk’s hostile acquisition of the company. Top brands including Apple, Walmart, Walt Disney, and Warner Bros Discovery suspended their ads on X. As per a Bloomberg report 2023’s estimated revenue of X from ad sales is lowly $2.5 billion, far below the previous rate of approximately $1 billion per quarter. In 2023, Elon Musk was caught red handed endorsing an antisemitic post on the service. This only aggravated the situation.
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