In 2022,
Elon Musk
bought
, now known as
X
, for $44 billion, and cut to over a year later, the social media company is worth about one-third of it.
Fidelity
, a mutual fund company that is also one of the investors in Musk’s X, has devalued its shares in the company.
According to a recent disclosure that runs through the end of November 2023, Fidelity believes that X is now worth 71.5 per cent less than at the time of the original purchase.
The shares were purchased for $44 billion, and $54.20 per share, when the company was known as Twitter.
Fidelity decreased the value of its Twitter shares by 10.7 per cent in November. During that month,
Musk
made controversial comments about boycotting advertisers on stage with the New York Times.
Internal documents obtained by The New York Times in October last year revealed that X, formerly known as Twitter, had distributed stock grants to its employees. The company offered equity at $45 per share in the form of restricted stock units to employees. The documents indicated that the company's worth at the time was about $19 billion, almost 55 per cent from the $44 drop in the value since Musk acquired the company.
Musk has admitted to overpaying for the social media platform. In March, he sent an email to his employees stating that he believed Twitter was worth $20 billion, referring to it as an "inverse start-up."
English (US) ·