Twitter value continues to plummet, now worth a third of what it was when Elon Musk bought it
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Twitter is valued at a third of what it was when billionaire Elon Musk paid $44 billion for the social media platform in October.
A fund operated by Fidelity investment company marked down the worth of its share in Twitter Sunday, now valuing the $20 billion stake it held when Musk took control of Twitter at $6.55 billion. It’s not clear how Fidelity arrived at that number. Twitter replied with a poop emoji when emailed about the platform’s worth.
This is the third time since Musk’s Twitter acquisition that Fidelity Blue Chip Growth Fund marked down the platform’s worth, according to NASDAQ.
Musk’s takeover of the company began with massive staff cuts and subsequent operational struggles, including a humiliating meltdown last week when presidential hopeful Ron DeSantis chose the social media platform to announce his candidacy for the 2024 election. The Florida governor’s long-awaited declaration was finally delivered to a modest live audience that sat through 20 minutes of confusion before Twitter operatives got the Twitter Spaces program to work properly.
Musk told his underlings in late March that Twitter lost more than half its worth since he took over operations. A couple weeks later, the 51-year-old entrepreneur told BBC the company was ”roughly” breaking even.
Twitter has struggled to attract advertising amid the company’s decision to reinstate platform users whose accounts had been suspended due to the dissemination of conspiracy theories and hate speech. Musk himself has pushed baseless claims to his 2 million followers.
He recently told CNBC Twitter had lost $40 million in advertising.
Musk has attempted to make Twitter profitable by charging for blue checks indicating accounts belong to the companies and individuals tweeting from those feeds. After public figures including author Stephen King made clear they would not pay to provide content to Twitter, the company provided gratis check marks for some celebrities but not others.
With News Wire Services
