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.

  • tswerts@lemmy.world
    2·
    10 months 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·
      10 months 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