Twitter’s Now Worth is One-Third Of Elon Musk’s Purchase Price: Report

Following Elon Musk’s acquisition of Twitter, the social media platform is now worth just one-third of the price that he had purchased it for. The aforementioned was revealed by Fidelity, which recently marked down the value of its equity stake in the company.

Musk has admitted that the $44 billion price he paid for Twitter, which included $33.5 billion in equity, was excessive. He recently claimed that Twitter is now only worth about 50% of what he paid for it. It’s unclear how Fidelity arrived at its revised, lower valuation or whether the company provides it with any non-public information.

In November, Fidelity first lowered the value of its Twitter holding to 44% of the original purchase price. Additional price reductions came after that in December and February.

Since Musk took over, Twitter has faced financial difficulties. Musk said in March that his erratic decision-making and issues with content moderation caused the company’s advertising revenue to drop by 50% after burdening it with $13 billion in debt. Selling Twitter Blue subscriptions has been an unsuccessful attempt to recover that money. Less than 1% of Twitter’s monthly users had signed up by the end of March. An inquiry for comment received no specific response from Twitter.

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According to the Bloomberg Billionaires Index, which uses Fidelity’s valuation to determine the value of his holding, Musk’s investment in Twitter is now worth $8.8 billion. Last year, Musk spent more than $25 billion to buy an estimated 79% stake in the business.

According to the index, the most recent markdown subtracts about $850 million from Musk’s $187 billion fortune. Despite Twitter’s problems, Musk’s wealth has increased by more than $48 billion this year, largely as a result of a 63% increase in the share price of Tesla Inc.

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