The social media platform X has lost 71% of its value since it was bought by Elon Musk, according to the mutual fund Fidelity.
Fidelity, which owns a stake in X Holdings, said in a disclosure obtained by Axios that it had marked down the value of its shares by 71.5% since Musk’s purchase.
Musk acquired Twitter for $44bn in October 2022 and renamed the platform X in July 2023. Fidelity’s estimate would place the value of X at about $12.5bn.
The number of monthly users of X dropped by 15% in the first year since Musk’s takeover amid concerns over a rise in hate speech on the platform.
It never was worth $44bn, he just threw out a sum of money he knew they couldn’t say no to and then was shocked when they took him up on the offer and tried to back out.
The only surprising thing about it is it wasn’t $69 billion or $420 billion.
It wasn’t $420 billion, but somewhat unsurprisingly, it was still a 420 joke. He offered a share price of $54.20, which was signifigantly higher than what it was at that time trading for. Guess he was just super committed to the bit.
He was only committed to the bit when the FTC forced him to be committed.
LOL true. Not sure what the fuck he was thinking offering such a ridiculous price in the first place. Maybe just some good old fashioned stock price manipulation?
Yup. He had a 7% stake in twitter at the time amd broke the law by not reporting the size of the stake. He only made the offer after the news broke and the stock price shot the hell up. Higher offer, the higher share price jumps.
After Twitter said “you got a deal” he likely thought he could still offload that 7% then back out, but the contract was hilariously in favor of Twitter and he still signed it.
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