Mutual fund Fidelity, which owns stake in social media platform, marks down value of its shares in disclosure obtained by Axios

The social media platform X has lost 71% of its value since it was bought by Elon Musk, according to the mutual fund Fidelity.

Fidelity, which owns a stake in X Holdings, said in a disclosure obtained by Axios that it had marked down the value of its shares by 71.5% since Musk’s purchase.

Musk acquired Twitter for $44bn in October 2022 and renamed the platform X in July 2023. Fidelity’s estimate would place the value of X at about $12.5bn.

The number of monthly users of X dropped by 15% in the first year since Musk’s takeover amid concerns over a rise in hate speech on the platform.

  • Buffalox@lemmy.world
    42·
    10 months ago

    Ah yes, that makes sense, because Musk bought it at twice what it was worth. /S
    Meaning we start at 50%, so valuing it at 28.5% makes no sense, after Musk increased cost to run the company with a high interest loan that cost 1.5 Billion per year in interest. Money that didn’t go into the company, but Musk used to finance the purchase. Then he drove away about 70% of advertisers, and the company is basically bankrupt from those two issues.
    The real value is technically zero, because it has negative internal value, and it is running at huge deficits. But if you say there is hope as long as you live, and if you believe Musk is a financial magician, you may attribute some value from that. But again the value is technically as close to zero as you can get for a company that isn’t actually bankrupt with vastly negative assets.

      • Buffalox@lemmy.world
        10·
        10 months ago

        That’s only a value if someone wants to actually pay for it. The Saudis lend the money at a high interest rate.
        Maybe it has value to them to just get it shut down? But why would that be worth 22 Billion plus a long term intensive engagement that threatens to hurt his other businesses too to Musk?
        Musk is an idiot Nazi who wants a dictator to rule USA, because a dictator is inherently corrupt, so Musk can easier influence a dictator than a democracy. I sure hope USA doesn’t give Musk that victory.

        • kameecoding@lemmy.world
          101·
          10 months ago

          well Musk is pro Trump isn’t he? didn’t trump sign a most lucrative weapons deal with the Saudis?

          a few billion is nothing to the saudis in exchange to controlling a narrative over a huge number of easy to manipulate people

          they will have splashed about 10x 22 billion just on a world cup to do a bit of sport washing of their image.

          • ChickenLadyLovesLife@lemmy.worldEnglish
            3·
            10 months ago

            a few billion is nothing to the saudis

            No amount of money is anything to the saudis. They don’t have wealth, they have a literal spigot that pours out as much money as they want whenever they want it.

          • Buffalox@lemmy.world
            1·
            10 months ago

            Haha, yes I can imagine this go wrong and they’ll say, My bad that went exactly as we expected! Ups I mean not as expected. lol