Business

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.

Also Read: Twitter Faces Another Lawsuit; It’s Former PR Agency Sues It For Unpaid Bills

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.

Also Read: Mukesh Ambani-backed EV Maker Altigreen is Said to Weigh Raising $85 million

Malika Sahni

Recent Posts

Effective Measures To Reduce Belly Fat

Excess abdominal fat increases the likelihood of heart disease, type 2 diabetes, and other chronic…

14 mins ago

Pakistan’s Digital Frontline: Jokes, Memes And Savage Self-Roasts

While tensions between India and Pakistan escalate post the tragic Pahalgam terror attack, something unexpected…

10 hours ago

Reliance Industries Q4 Net Profit Rises 6.4% As Retail And Digital Units Offset Energy Weakness

Reliance Industries delivered a strong Q4 FY25 performance, with Y-o-Y net profit rising 6.4% to…

10 hours ago

Yash Pratap Singh And Mehak Jaiswal Top UP Board Exams With Outstanding Scores

Yash Pratap Singh of Jalaun tops Class 10 with 97.83%, while Prayagraj’s Mehak Jaiswal secures…

10 hours ago

Yogi Adityanath Calls For Reforms To Make Madrasa Education Modern And Employment-Oriented

Chief Minister Yogi Adityanath on Friday emphasised the need for sweeping reforms in the madrasa…

11 hours ago

Tulsi Gabbard Backs India’s Hunt For Pahalgam Terror Attack Perpetrators

United States Director of National Intelligence (DNI) Tulsi Gabbard on Friday expressed strong support for…

12 hours ago