Yahoo Finance Musk’s X Value Cut by Another Fidelity Writedown, Axios Reports
(Bloomberg) -- Elon Musk’s X is now worth less than a third of the price the billionaire paid for the former Twitter Inc., Axios reported, citing disclosures by Fidelity.
Most Read from Bloomberg
Tokyo Runway Collision Leaves 5 Dead, Airbus Aircraft Ablaze
US Pressured Netherlands to Block China-Bound Chip Machinery
India’s Crude Oil Imports From Russia Plunge on Payment Issues
The investment firm, which helped Musk complete the $44 billion purchase, cut by a further 11% the value of its holding in X as of the end of November, Axios said, citing the latest portfolio update for Fidelity’s Blue Chip Growth Fund. It’s the latest in a series of markdowns by Fidelity after closely held X struggled to win back advertisers in 2023.
Musk’s acquisition of Twitter in late October 2022 was followed by a cascade of abrupt changes, from drastic layoffs and shuttering of international offices to upending the platform’s moderation policies and verification system. The upheaval put off advertisers and 2023’s revenue from ad sales is estimated to come in at $2.5 billion, far below the prior rate of roughly $1 billion per quarter, Bloomberg News reported last month.
Read more: Musk’s X 2023 Ad Sales Projected to Slump to About $2.5 Billion
In November, Musk famously told advertisers that abandoned X over his endorsement of an antisemitic post that they can “f——” themselves. Earlier that month, Musk agreed with a post that said Jewish people held a “dialectical hatred” of White people. That message has since drawn criticism from the White House as well as several Tesla Inc. investors. Major corporate spenders, including Walt Disney Co. and Apple Inc., distanced themselves from the platform.
Read More: Musk Says Ad Boycott on X May Kill It, Slings Expletives
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
