The downward spiral continues for X, formerly known as Twitter, with a new valuation from Fidelity’s Blue Chip Growth Fund estimating its shares at $5.3 million, down from $6.3 million in October.
This figure is a far cry from the $19.66 million valuation reported just before Elon Musk‘s takeover in October 2022.
Related: Elon Musk Takes Over Twitter: Who’s In Charge, Who’s Gone And What Happens To The Stock?
Fidelity’s consistent markdowns since Musk’s buyout raise questions about the platform’s resilience under its new ownership.
X’s Valuation: Potentially Down 72% Since Musk Took Over
Internal documents have surfaced, revealing that employees at X, the once-iconic Twitter, received equity at a valuation of $19 billion on October 30, 2023 — a sharp contrast to Elon Musk’s original purchase price of $44 billion a year earlier. The valuation, representing $45 per share, reflects a staggering 55% discount.
The latest revelation comes on the heels of Fidelity’s announcement that its stake in the platform plummeted by 72% since Musk’s takeover in late 2022.
As of November, Fidelity reported its current stake in X was worth $5.6 million, marking a 72% drop from the valuation at the time of Musk’s assumption of control. This alarming depreciation raises concerns about X’s overall worth, potentially signaling a 72% decrease since Musk’s $44 billion acquisition.
If accurate, this would place X’s current valuation at approximately $12.3 billion, overshadowed by the $13 billion in debt that Musk incurred to purchase the platform.
Also Read: Before Musk’s Outburst At Twitter Advertisers, Fidelity Had Taken A Swipe At Valuation
X’s Challenges Beyond The Financials
The challenges facing X extend beyond financial metrics. The platform has been marred by a series of controversies that have rattled advertiser confidence.
In November, major advertisers, including Walt Disney Co (NYSE:DIS), Apple Inc (NASDAQ:AAPL), and Coca-Cola Co. (NYSE:KO), withdrew paid advertising in response to Musk’s endorsement of an antisemitic post, further denting X’s reputation and financial stability.
Adding to the complexity, Musk’s unfiltered responses have stirred the pot. In an on-stage interview with the New York Times, Musk told boycotting X advertisers to “go f**k…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
