These are difficult times for X Holdings, the company of the famous social network previously called Twitter, which was acquired by Elon Musk for $ 44 billion in October 2022. According to a recent valuation by X’s mutual fund giant and shareholder Fidelity Investments, the social platform’s value has suffered a serious depreciation in the last year. Specifically, Fidelity estimates that X is worth 71.5 percent less than when it was purchased, or just $12.5 billion.
That loss in value includes a 10.7 percent drop estimated in November, when the businessman railed against boycotting advertisers and effectively went bankrupt. Not to mention the pro-Hamas propaganda and the malfunctions of the microblogging platform that emerged in the days of the European launch of Threads, the Meta app that aims to “replace” X.
In 2023, X’s ad sales could fall by 1 billion euros to just $2.5 billion (Bloomberg). The South African billionaire decided to focus everything on premium subscriptions to cope with the huge decline in advertising revenues, but for now it does not look like this strategy will work. Who knows what Musk, known for his extravagant ideas, will come up with now to revive X’s fortunes.
Source: Today IT
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.
