NEW YORK – Twitter is currently worth a third of the $44 billion that billionaire Elon Musk spent last year to take over the social network, according to an estimate by the investment fund Fidelity, one of the firms that participated in the operation.
Fidelity calculates that its stake in Twitter was worth just over $6.5 billion at the end of April, compared to the $19.7 billion it attributed to it last October, when Musk completed the acquisition of the company.
Thus, the estimate of the fund – which appears in a document detailing its investments – would give Twitter a valuation of about $15 billion today.
Musk, who bought Twitter last year on a promise to restore his vision of “free speech,” has introduced major changes to how the platform works, changes that have led many advertisers to withdraw or reduce their ad spend on Twitter. the social network.
Advertising has so far accounted for the bulk of the company’s income, where the magnate has proceeded to a huge cut in staff amid warnings of possible bankruptcy if spending is not reduced.
In a March message to employees, Musk himself estimated that Twitter’s value had fallen to about $20 billion, less than half the $44 billion he paid in October.
The valuation released now by Fidelity – which refers to Twitter with the new name of X Holdings given to it by Musk – precedes the latest big move at the company: the appointment of Linda Yaccarino as the new CEO.
Musk, who had assumed that role after the purchase, has chosen an executive with extensive advertising experience to lead business operations, while he will focus on product design and new technologies for the social network.
2023-05-31 18:12:27
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