New Delhi: According to recent media reports, Twitter’s value has significantly decreased to around $15 billion, a staggering 33 percent decline from the $44 billion that Elon Musk and his co-investors initially paid to acquire the platform. Ever since Musk took over, Twitter has faced financial challenges. The renowned financial services firm, Fidelity, stated in its monthly portfolio valuations report that Twitter is now worth only one-third of what Musk had paid for the micro-blogging platform.
Musk’s investment in Twitter currently stands at $8.8 billion. In October of the previous year, the outgoing Twitter CEO spent over $25 billion to secure an estimated 79 percent stake in the company. Musk openly admitted to overpaying for the acquisition, including $33.5 billion in equity.
During Tesla’s earnings call in October, Musk expressed his optimism about Twitter’s long-term potential, stating, “Although myself and the other investors are obviously overpaying for Twitter right now, I believe its long-term potential is significantly greater than its current value. I’m excited about the Twitter situation because I have a deep understanding of their product, and I believe it is an asset that has been underutilized for a long time but possesses incredible potential.”
Fidelity initially reduced the value of its Twitter stake to 44 percent of the purchase price in November. Subsequently, there were further markdowns. As of late April, Fidelity’s Twitter stake, now under Musk’s X Holdings, was valued at approximately $6.55 million. Twitter is currently facing challenges in generating substantial profits, with a reduced workforce of about 1,500 employees compared to its previous strength of 7,500.