{"id":17834,"date":"2023-06-03T21:20:34","date_gmt":"2023-06-04T01:20:34","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/twitter-is-worth-just-33-of-what-elon-musk-bought-it-for-fidelity-says\/"},"modified":"2023-06-03T21:20:35","modified_gmt":"2023-06-04T01:20:35","slug":"twitter-is-worth-just-33-of-what-elon-musk-bought-it-for-fidelity-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=17834","title":{"rendered":"Twitter is worth just 33% of what Elon Musk bought it for, Fidelity says"},"content":{"rendered":"
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Twitter is worth about one-third of what billionaire Elon Musk paid for it last year, American financial services corporation Fidelity says.<\/p>\n

That overall valuation comes from Fidelity, which estimated that its share was worth only $6.6 million as of April 28, the company\u2019s monthly disclosures show \u2014 down from $19.7 million last October. The filing did not specify why Fidelity drastically lowered its valuation of Twitter, which is now technically called X Corp.<\/p>\n

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Musk\u00a0bought the social-media company\u00a0late last year for $44 billion (after\u00a0failing to back out of the deal), and has claimed Twitter wasn\u2019t making money.<\/p>\n

The Tesla
\n TSLA,
\n +3.11%<\/bg-quote>
\n and SpaceX CEO admitted that he paid too much for Twitter last October, while adding the company had \u201cincredible potential.\u201d<\/p>\n

\u201cAlthough obviously, myself and the other investors are obviously overpaying for it with Twitter right now,\u201d he said.<\/p>\n

A leaked Musk email earlier this year also stated that\u00a0Twitter was worth under $20 billion in March, or less than half of what he paid for it five months earlier.<\/p>\n

Per Musk\u2019s new media-relations policy, Twitter replied with a poop emoji when emailed by MarketWatch.<\/p>\n

Twitter has had major financial issues since Musk\u2019s bought the company. In 2021, a year before Musk\u2019s takeover, 90% of Twitter\u2019s revenue came from advertising. And\u00a0Twitter\u2019s adjusted earnings and total revenue dropped roughly 40%\u00a0on a year-over-year in December, according to a Wall Street Journal report.<\/p>\n

Musk is likely hoping that newly minted CEO Linda Yaccarino, a former advertising executive for NBCUniversal, can help restore some of the company\u2019s advertising connections.<\/p>\n

MarketWatch First Take:<\/strong>\u00a0Elon Musk\u2019s new Twitter CEO faces uphill battle as \u2018a textbook case of the glass cliff\u2019<\/p>\n

Twitter has also been unable to escape controversy in recent months. Musk has laid off more than 80% of the company\u2019s workforce, inaccurately named news outlets as \u201cstate media,\u201d and removed legacy blue verification badges.<\/p>\n

Instead of those badges, Musk moved in favor of Twitter Blue, a subscription service that less than 1% of monthly active users pay for as of April, according to\u00a0Bloomberg.<\/p>\n

Some critics believe the lack of a thorough verification process subjects Musk-era Twitter users to increased\u00a0misinformation and impersonation, something that happened this week with an account impersonating Rep. Alexandria Ocasio-Cortez. The account Ocasio-Cortez is referencing subscribes to Twitter Blue, and Musk replied to one of its tweets.<\/p>\n

Don\u2019t miss: <\/strong>Tesla must address this question on its path to dominance, Barclays says<\/a><\/p>\n<\/p><\/div>\n<\/div>\n