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.
I mean twitters most valuable assets were it’s brand recognition and it’s huge user base, including celebrities and politicians. So one of the things Musk does is throw away the branding, including the bird symbol which was featured on almost all corpo websites as a widget and replaces it with a generic X. He also opens the gates to previously banned racist sewer humans who trash the public image of the site. Advertising plummets. The user base is still pretty huge, but it’s shrinking. At this point even if he sold it, for a fraction of what he paid, I’m not sure anyone could restore its previous reputation.