Fidelity: Twitter is Now Only Worth a Third of What Elon Musk Paid for It

3 months ago 5

 Twitter is Now Only Worth a Third of What Elon Musk Paid for It

Photo: Win McNamee (Getty Images)

Last October, Elon Musk closed connected a woody to acquisition Twitter for a whopping $44 billion. At the time, it was a price-tag that galore estimated to beryllium way excessively overmuch money. Musk, himself, admitted that helium and his co-investors whitethorn person overpaid for the societal media platform. Nevertheless, helium soldiered connected with the acquisition, determined to alteration it into an “everything” app that, according to his generous estimation, could yet beryllium worthy immoderate $250 billion.

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Now, a small much than fractional a twelvemonth later, the fruits of Musk’s labour are not lone not paying disconnected but look to beryllium pushing Twitter’s marketplace worth successful the other direction. This week, fiscal services elephantine Fidelity estimated successful a monthly disclosure that the microblogging tract is worthy astir 33 percent of what Musk initially paid for it—a projection that would enactment its worth astatine something similar $15 billion. Fidelity came up with the valuation based connected a markdown of its ain involvement successful the company. 

Bloomberg, which primitively reported Fidelity’s assessment, notes that its “unclear however Fidelity arrived astatine its new, little valuation oregon whether it receives immoderate non-public accusation from the company.”

So that’s...uh, not great. Under Musk’s leadership, Twitter has trotted retired much than a fewer bizarre moneymaking efforts—including an ill-fated bid to marque radical pay for illustration verification. Twitter besides attempted to chopped costs by firing ample parts of its workforce, but the level has suffered different fiscal slings and arrows—including a large dip successful advertizing revenue.

Musk, himself, seems to beryllium alert that Twitter’s fiscal concern isn’t great. In precocious March, a memo leaked that showed the billionaire thought Twitter was past worthy astir $20 billion, oregon little than fractional of what helium initially paid for it.

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