Twitter’s value is said to have fallen to around $15 billion, just over a third of the $44 billion paid by Elon Musk at the end of October 2022. The $15 billion valuation is based on Fidelity’s latest analysis regarding his participation in the company.
Last October, Elon Musk reached an agreement to buy Twitter for the astronomical sum of 44 billion dollars. At the time, this price was considered by many to be far too high. Musk himself admitted that he and his co-investors may have overpaid social media platform, and this is confirmed today.
Financial services giant Fidelity estimated in a monthly publication that the microblogging site was worth about 33% of what Musk originally paid to acquire it, which would correspond to a value of approximately 15 billion dollars. Fidelity arrived at this valuation based on the reduction of its own stake in the company.
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Elon Musk caused Twitter to lose 65% in value
The asset manager, which owns a stake in Twitter as X Holdings Corp. had already reduced its valuation by more than 55% at the end of last yearabout a month after Musk acquired the platform.
The purchase of the site by the billionaire required the support of a number of investors, who contributed about $13 billion of the $44 billion paid by Musk for the platform. Interest payments on that debt amount to around $300 million, which Bloomberg says has already been paid twice to a group of seven banks that helped Musk but were reportedly unable to pay. sell the debt.
Under Musk’s leadership, Twitter laid off much of its staff, lost many of its advertisers, and embarked on the difficult rollout of a paid subscription service and the end of traditional user verification, which led in some cases to impersonation of high-profile brands and accounts. Now that the social network has welcomed a new CEO, we hope that Twitter will succeed in climbing the slope.