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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.
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Down by 71% but still elon musk is one of the richest in the world and can buy 20 more twitter without batting an eye
Those are rookie numbers!! I better see -94% by the end of this week!!
And this year it will drop further!
I was wondering what that large X close symbol was on imbedded Twitter posts was…
How the hell was it even worth 44 billion? I struggle to understand how twitter was ever that important and never once found a need to use it myself. I always found it strange that governments and other public entities would use it, like a city making posts about traffic disruptions, or a police dept showing off the latest drug bust via hashtags and url shortening. Fucking strange world.
Lots and lots of people love parasocial relationships with celebrities, love throwing idiotic over simplified /but effective/ political slogans and newsbites around, and of course attempting to become ‘thought leaders’ or ‘influencers’ of some kind.
People then get addicted to the constant flow of ‘content’ and forget how to live without it.
Basically, it was perfect for the vapid and vain and uncritical people, and as it got more popular, network effect took over to the point well everyone is using it so we should too!
The company has rarely posted profits in its entire history.
It does not have any interesting technology or ideas as a service, app or website, it simply /had/ a large user base, which is basically now dwindling as Musk has proved to be the most incompetent manager of any large social media service that has ever existed.
Even more hilarious, a huge reason Musk bought Twitter was because he believed conspiracy theory type logically inconsistent right wing nonsense about how Twitter was suppressing right wing voices when empirically this could not have been farther from the truth, and then proved all his contradictory notions of how society should work are in fact nonsense with his insane decisions.
He basically acted like a 16 year old 4channer trying to moderate his personal private forum for an edgy video game community for the first time, but applied this kind of thinking to a platform of hundreds of millions of people.
And he is still acting this way, telling advertisers to go fuck themselves and then spinning a story in his head about how he can do no wrong and everyone is evil and out to get him, that the people of Earth will judge advertisers for destroying the one holy website that connects us all.
Paranoid megalomaniacal delusional sociopath.
It was never worth that. It was at most half that. But Elon Musk claimed he would buy it, but Twitter responded that it was NOT for sale. Then Musk offered double the value, and Twitter said…
OK! Thank you very much. 😀 🤪 😋 😜
Then Musk tried to get out of the deal, but he couldn’t because there are laws about that stuff, something Musk is used to not having to care about, because his lawyers handle such issues for him.
He ended up having to pay, but he got some stupid people to help him finance it, making him potentially only lose half! He loaned half the money at a high interest rate in Twitter, so Twitter would have to pay it, leaving Twitter with a loan on top of already existing debt, that was to the amount of the total actual worth of Twitter sans the Musk offer. Why anyone would agree to loan Twitter money under such conditions is very strange, but the interest rate was high. Still there is no way a company already running at a deficit can service such a loan. But Musk is a shrewd conman, and he probably promised all sorts of mindbogglingly profitable businesses he would turn Twitter into.
Of course as the idiot he is, Musk then sued the Twitter lawyers for forcing him to buy at the price he had himself offered unconditionally, because why the hell not, lawyers are people too, and they need to earn a living.
So just to make sure everything was fine, he fired 80% of the people that worked at Twitter, closed one of the datacenters, and Tweeted some racist antisemitic shit, so he lost 70% of his advertisers.
And lately he has been severely butthurt that things aren’t going well, literally saying to advertisers they can go fuck themselves, and claiming the earth will know the truth, which he intends to document in great detail. Yes he actually said those things!
So now the company has no internal value, and a bankruptcy will result in Zero money back to Musk. 22 Billion out the window for Musk, and another 22 Billion for those who helped him.
It wasn’t. Musk was blowing hot air and offered a stupid-high share price. Twitter sued to force him to honor that price.
My understanding is that he was basically trying to manipulate the stock price by publicly offering a sum, and he couldn’t back out without very clearly breaking SEC laws saying you can’t use your influence to directly manipulate the stock market.
Maybe, but I really believe he was just shitposting and got called on it.
Absolutely, he is used to his lawyers being able to get him out of such messes, like when he called a rescuer a pedophile. But this time he screwed up to badly, and the lawyers couldn’t rescue him from himself.
Elon Musk is a narcissist who thinks he can do whatever he wants without consequences. Which is mostly true, as there are very few exceptions. He just happened to hit on one of them.Wasn’t the penalty for not going ahead with the purchase 1 billion dollars? That seems to have been the better deal after all?
Probably
That was only if he couldn’t secure funding, which he could. It did not allow him to just pay the 1bil and walk away.
The contract he did sign was aslo recklessly stupid, basically saying “i wave all inspections and due diligence l and promise to buy this at $54.20/share.” Later, when he tried to bring up “possible spam bots” as some kind of get out of jail free card, twitter execs just had to point to that line and say “pay.”
He made a lot of noise about fighting the buyout, but the court he was going to would have 100% forced him to buy based on his means and cut and try contract twitter got that sucker to sign
That estimate seems fairly high.
edit: Just to be clear, I’d be surprised it it is worth even $5Billion now.
You mean allowing Nazis to run rampant on the platform turns off major advertisers?
Freeze peach
This is the absolute truth.
Yeah but how good does Elon feel about himself now that he has a large forced audience?
It’s a great deal unless you’re one of his investors.
Takes real talent to lose 71% of a company in a short period of time.
Musk lost 71% of his “investment”. Twitter was never worth that much. Before Musk started mucking with the stock, it was worth about $29 billion, and even that’s still mostly stock and investor BS. Afaik, it was rarely, if ever, actually profitable. Just a capital fund poster child with hopes of monetizing user information.
This is how the housing market works too! Buy a house for 500k, then loose a ton of value and sell for 50k. This way people can afford housing… just not you personally.
Wait, but Joe Rogan and his chubs were saying how Musk was a genius businessman and will fix the boys problem and turn it into a free speech utopia. /s
Joe Rogan chubs… Not something I ever want to think about. But to be fair, I’m sure a lot of his chuds have chubs for him.
Grr that Elon, to hell with him
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.It’s value is for pushing propaganda there is a reason the Saudis gave musk money
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.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.
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
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.
Money was never the goal. It was sabotage.
This was a hit and I’m betting it traces back to the Kremlin.
Bro, its not a secret. It was the Saudis.
Both, actually.
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