The value of X, formerly known as Twitter, has decreased by 71 percent from what it was when Elon Musk bought it in October 2022, according to Fidelity Asset Management company.
Videliety indicated that the company’s value has now decreased by a percentage of 71.5% from what it was when Musk bought it.
Mask had paid 44 billion dollars to acquire the company, which was known at the time as Twitter.
It should be noted that this is not the first time that fidelity re-evaluates X. Fidelity owns a stake in X, although it routinely lowers the value of this stake since Musk’s acquisition.
The investment group conducted the evaluation on Monday, which marks the second time that the value of X has been decreased in 2023.
In the month of May last year, Virgin Galactic managed to achieve a value of around 15 billion dollars for X, which is approximately one-third of what Musk paid.
Fidelity was part of the investment group that assisted Musk in acquiring Twitter.
Elon Musk acquired Twitter in a deal worth $44 billion in order to turn it into a private company.
Vidyaleti may not necessarily have a lot of internal information about the company’s financial performance, even though it is a shareholder in the private company.
The year 2023 was challenging for Company X and its relationships with advertisers. In July, Musk stated that the company was facing financial difficulties due to a significant decrease in advertising.
In a post on the X platform, Musk wrote, “We are still experiencing a negative cash flow due to a decrease in advertising revenues by approximately 50 percent, in addition to the heavy burden of debt.”
Companies, such as Apple and Disney, withdrew their advertisements from X in November after Musk seemingly endorsed an anti-Semitic post.
Elon Musk later apologized for the anti-Semitic post, although he criticized advertisers for boycotting his company. Musk later acknowledged that the boycotts could potentially destroy the company.
Elon Musk stated that “this advertising boycott is killing the company. The whole world knows that these advertisers have killed the company.”
Before acquiring and rebranding it, Musk heavily criticized Twitter, arguing that it posed a threat to democracy and civilization itself.
In the early months of his leadership of the company, he dismissed thousands of employees and maintained an arrogant attitude towards advertisers and threats to withdraw from the platform.
