In 2022, Elon Musk acquired Twitter for a staggering $44 billion, initiating a saga to transform the platform into a new service advocating for "free speech" called X.
However, not all efforts to reboot Twitter have been successful: some new features encountered bugs, and the launch of a new subscription led to an influx of fake accounts and trolls on the social network. Additionally, the billionaire's statements, which were often quite controversial, did not sit well with many advertisers — last year, Apple and Disney pulled out of Twitter (Musk later accused them of intentional boycotting and told them to "get lost" — a more polite translation).
All these events have had an impact on earnings and, consequently, the company's valuation — if we consider the initial estimate of $44 billion that Musk paid during the acquisition, it has now plummeted by a staggering 79%, according to the latest data from Fidelity (due to TechCrunch).
Fidelity Investments is an American holding company providing financial services and assisted Musk in acquiring Twitter (it currently estimates its stake in the social network at approximately $4.19 million).
For context: Fidelity originally invested $19.66 million in Twitter (through the Blue Chip Fund), and at the beginning of August, it valued its shares in X at about $5.5 million. The current decrease of 78.7% means the company now values X at roughly $9.4 billion.
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