Elon Musk
SAN FRANCISCO: Twitter is now just one-third worth of what Elon Musk paid for the social-media platform, according to Fidelity which recently marked down the value of its equity stake in the company.
Musk acknowledged he overpaid for Twitter
Musk has acknowledged he overpaid for Twitter, he bought the social media platform $44 billion, including $33.5 billion in equity. Recently, the Tesla CEO Musk said that Twitter is worth less than the amount he had invested in it. Till now it is unclear how Fidelity has arrived at its lower valuation.
Twitter struggling financially
Fidelity first brought down its stake in Twitter in November to around 44% and then again reduced it in December and February. After Musk bought Twitter, it struggled financially. In March Musk said that after saddling the company with $13 billion of debt, his erratic decision-making and challenges with content moderation led advertising revenue to decline by 50%. An attempt to bounce back again by selling the blue subscriptions has not been enough successful.
Elon Musk is the World’s Richest Man
Currently, Musk’s investment in Twitter is nearly $8.8 billion. According to the report Musk spent more than $25 to buy the social media platform last year. Despite Twitter struggling financially, Elon Musk became the World’s Richest Man as per the Bloomberg Billionaires Index, his net worth has gone up to $48 billion this year.
Also Read: The Kapil Sharma Show: Top 5 Moments Of The Season
