The value of Elon Musk’s X has decreased, and it is now less than one-third of its purchase price
The $44 billion Elon Musk paid to acquire the erstwhile Twitter Inc. has seen a substantial decline in value. Fidelity disclosed that the current value of “X” is less than one-third of the original purchase price, as reported by Axios.
According to Fidelity, X’s value has dropped by 71% since Musk’s takeover in late 2022.
By the end of November, the Blue Chip Growth Fund at Fidelity saw a further 11% decline in the value of its holdings in X, according to the fund’s most recent portfolio report.
According to the research, markdowns would persist while Fidelity evaluated the privately owned, ad-funded business, which would have difficulty luring advertisers in 2023.
After Elon Musk purchased Twitter in late October 2022, there were some abrupt changes. These adjustments included anything from large-scale layoffs and the closing of foreign offices to a thorough revision of the platform’s verification and moderation procedures.
Advertisers were put off by the unrest, and Bloomberg News revealed last month that the projected income from ad sales for 2023 is only likely to reach $2.5 billion, a substantial decrease from the previous quarterly pace of over $1 billion.
