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    The Value of Twitter Plummeted 66% Following Elon Musk’s Purchase

    Fidelity reports that Twitter’s worth has drastically dropped after Elon Musk acquired the social media platform, plunging by 66%. The investment company recently decreased its ownership share in Twitter, unveiling that the firm is now valued at just one-third of Musk’s acquisition cost.

    Musk himself admitted to overspending on Twitter, investing a hefty $44 billion for the purchase, with $33.5 billion in stocks. In a recent statement, Musk confessed that Twitter’s value is now less than half of his initial payment. The specifics on how Fidelity reached this revised, lower valuation remains unclear, along with their access to undisclosed information from the firm.

    Fidelity initially downgraded the value of their Twitter investment in November, lowering it to 44% of the buying price. Subsequent reductions were made in December and February, indicating the continuous challenges Twitter has been encountering since Musk took the helm.

    Musk’s decision-making and issues with managing content have negatively affected Twitter’s financial performance. Musk disclosed that the company’s ad revenue has fallen by 50%, primarily due to a substantial $13 billion debt. Twitter’s efforts to recuperate this lost revenue through promoting Twitter Blue subscriptions have not been successful, with less than 1% of the platform’s monthly users subscribing by the end of March.

    Twitter did not provide a specific response to inquiries about these challenges.

    As a consequence of these setbacks, Musk’s stake in Twitter is presently valued at $8.8 billion, according to the Bloomberg Billionaires Index, which utilizes Fidelity’s valuation to estimate his current ownership’s value. Last year, Musk invested more than $25 billion to obtain an estimated 79% share in the company.

    As per the index, the recent devaluation in Twitter’s value has led to a decrease of approximately $850 million in Musk’s wealth. Nonetheless, despite Twitter’s difficulties, Musk’s fortune has surged by over $48 billion this year, largely influenced by a remarkable 63% rise in Tesla Inc.’s stock price.

    Twitter’s value has seen a significant downturn since Elon Musk acquired it, sparking concerns about the platform’s future under his leadership.

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