Twitter is now worth a third of the $44 billion that billionaire Elon Musk spent last year acquiring the social network, according to an estimate from investment fund Fidelity, one of the firms involved in the operation.
Fidelity estimated that her Twitter stake was worth just over $6.5 billion at the end of April, up from the $19.7 billion it credited to her last October, when Musk completed his acquisition of the company.
Thus, the fund’s valuation, which is given in the document detailing its investments, today puts Twitter at roughly $15 billion.
Musk, who bought Twitter last year on the promise of restoring his idea of ”free speech,” has made major changes to how the platform works, changes that have forced many advertisers to drop or cut their spending on Twitter ads. .
So far, advertising has made up the bulk of the company’s revenue, where the tycoon has embarked on a massive downsizing amid warnings of possible bankruptcy if spending isn’t cut.
In a March message to employees, Musk himself calculated that the value of Twitter had fallen to about $20 billion, less than half of the $44 billion he paid in October.
The valuation now published by Fidelity, which refers to Twitter with the new name X Holdings given to it by Musk, precedes the company’s latest big step: the appointment of Linda Iaccarino as the new CEO.
Musk, who took over the role after the purchase, has selected an executive with extensive advertising experience to lead business operations while he focuses on product design and new technology for the social network. EFE
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
