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

Last October , Elon Musk closed on a deal to buy Twitterfor a walloping $ 44 billion . At the time , it was a price - ticket that many forecast to beway too much money . Musk , himself , admittedthat he and his co - investors may have overpaid for the societal media platform . Nevertheless , he soldiered on , dictated to transform his acquisitioninto an “ everything ” appthat , according tohis generous estimation , could eventually be worth $ 250 billion .

Now , a small more than half a year later , the fruits of Musk ’s Labour are not only not pay off but seem to be pushing Twitter ’s market place value in the opposite direction . This hebdomad , financial services giant Fidelityestimatedin amonthly disclosurethat the microblogging site is worth about 33 percent of what Musk initially paid for it — a ejection that would put its economic value atsomething like $ 15 billion . Fidelity came up with the evaluation free-base on a markdown of its own stake in the fellowship .

Bloomberg , which originallyreportedFidelity ’s assessment , notes that its “ indecipherable how Fidelity arrived at its novel , abject valuation or whether it find any non - public information from the company . ”

Photo: Win McNamee (Getty Images)

However the information was got , we can all agree that the resultant evaluation is … uh , not great . Under Musk ’s leadership , Twitter has attempted more than a few bizarre moneymaking efforts — include an ill - fated bid to make peoplepay for visibility verificationand bytrying to betray accessto its previously free API . The company has also attempted to cut cost by firingan astounding percentageof its workforce in a serial of layoffs . Despite these unconventional strategies or , perhaps , because of them , the platform has suffer ongoing financial slings and arrows — include amajor dipin ad taxation . The office , as Fidelity ’s new judgement shows , is not looking right .

Musk , himself , seems to be aware that Twitter ’s financial post is n’t great . In later March , a memorandum leakedthat show the billionaire thought Twitter was then worth about $ 20 billion , or less than one-half of what he ab initio yield for it .

Elon MuskHyperloopThe Boring CompanyX ( Twitter )

Breville Paradice 9 Review