X’s value drops by 71% after Elon Musk’s acquisition: Fidelity

• More than a year has passed since Elon Musk bought Twitter.
• The billionaire paid $44 billion for the platform in October 2022, after which he renamed it X.
• Asset manager Fidelity says the company’s value is down 71% since Musk took office, according to Axios.

Elon Musk’s X has lost more than 71% of its value since the mercurial billionaire bought it in October 2022, according to asset management firm Fidelity.

Fidelity says the company is now worth 71.5% less than when Musk bought it, according to an Axios article published on Sunday. Mr. Musk paid $44 billion to buy the company then known as Twitter.

This isn’t the first time Fidelity has reevaluated the company’s valuation.

According to Reuters, the giant investment trust company owns a stake in Company X, but has regularly reduced its value since Musk’s acquisition.

Fidelity estimated in May that X was only worth about $15 billion, a third of what Musk paid, according to Bloomberg.

2023 was a difficult year for X and its relationship with its advertisers.

In July, Musk said in a post on X that the company was in dire financial straits due to a significant drop in advertising.

“Our cash flow remains negative as advertising revenues have declined by up to 50% and we have taken on even more debt,” Musk wrote.

And in November, companies including Disney and IBM removed ads from X after Musk appeared to endorse anti-Semitic posts.

Musk later apologized for the anti-Semitic post, but blamed advertisers who boycotted his company.

“If someone tries to blackmail me with an ad? If they try to blackmail me with money, fuck it. Go. Screw it. yourself,” Musk said in an interview at the New York Times’ Dealbook Summit in November. he said.

But Musk later acknowledged that an advertiser boycott could “crush the company.”

“What this ad boycott is going to do is put the company out of business, and the whole world is going to know that those advertisers put the company out of business,” Musk said at the same event. Deaf,” he said.

Representatives for X and Fidelity did not immediately respond to Business Insider’s requests for comment outside of normal business hours.