Mutual fund Fidelity, which owns stake in social media platform, marks down value of its shares in disclosure obtained by Axios

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.

  • Melllvar@startrek.websiteEnglish
    15·
    1 year ago

    It wasn’t. Musk was blowing hot air and offered a stupid-high share price. Twitter sued to force him to honor that price.

    • DaCookeyMonsta@lemmy.world
      12·
      1 year ago

      My understanding is that he was basically trying to manipulate the stock price by publicly offering a sum, and he couldn’t back out without very clearly breaking SEC laws saying you can’t use your influence to directly manipulate the stock market.

        • Buffalox@lemmy.world
          5·
          1 year ago

          Absolutely, he is used to his lawyers being able to get him out of such messes, like when he called a rescuer a pedophile. But this time he screwed up to badly, and the lawyers couldn’t rescue him from himself.
          Elon Musk is a narcissist who thinks he can do whatever he wants without consequences. Which is mostly true, as there are very few exceptions. He just happened to hit on one of them.

        • tswerts@lemmy.world
          1·
          1 year ago

          Wasn’t the penalty for not going ahead with the purchase 1 billion dollars? That seems to have been the better deal after all?

          • mosiacmango@lemm.ee
            3·
            1 year ago

            That was only if he couldn’t secure funding, which he could. It did not allow him to just pay the 1bil and walk away.

            The contract he did sign was aslo recklessly stupid, basically saying “i wave all inspections and due diligence l and promise to buy this at $54.20/share.” Later, when he tried to bring up “possible spam bots” as some kind of get out of jail free card, twitter execs just had to point to that line and say “pay.”

            He made a lot of noise about fighting the buyout, but the court he was going to would have 100% forced him to buy based on his means and cut and try contract twitter got that sucker to sign