On Wednesday, Reddit co-founder Alexis Ohanian praised Elon Musk’s ambitious plans to transform X, formerly Twitter, into the ultimate “everything app.” Now, Omeed Malik, a veteran Wall Street executive and CEO of Farvahar Partners, has piled on the compliments for the billionaire entrepreneur’s efforts.
What Happened: During an appearance on CNBC’s Last Call, Malik addressed whether the accolades from Ohanian were warranted, given reports that the social media platform’s value has plummeted to less than half of its purchase price.
Malik remarked, “He has resurrected X, or Twitter,” suggesting that evaluating X’s worth based solely on Fidelity’s metrics might not be the most accurate approach.
Malik referred to Fidelity’s decision to raise X’s value in its fund by 11% in December, despite holding the stake at a 68% discount compared to Musk’s original purchase price, implying a valuation of approximately $14.1 billion.
He highlighted how various companies are utilizing X, citing investments in Tucker Carlson and the remarkable traction his videos have garnered on the platform. “When I look at the success Tucker’s had on X, it’s actually mind-blowing and it cannot be discounted,” Malik emphasized.
“Now as we start rolling out advertisements on that platform we double the amount of what people pay $7 million for a minute on the Super Bowl,” Malik stated.
He juxtaposed X’s recent success with its financial struggles under previous management, noting losses of $1 billion and $200 million in the final two years before Musk’s takeover.
“@elonmusk has resurrected X,” says @RealOmeedMalik, who has invested in ventures on the app. “1.0 lost, respectively, in the final 2 years before Musk took it over, a billion dollars, and then $200 million.” pic.twitter.com/2mGDU1T4la
— Last Call (@LastCallCNBC) February 16, 2024
Earlier, Ohanian had praised Musk’s efforts to integrate sports betting with BetMGM on X. He said, “Elon Musk told everyone he was going to build “the everything app” and month by month they’ve progressively been shipping the products + partnerships to bring this to fruition.”
It’s wild seeing a company…
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