Twitter Value Falls Drastically, Now Worth Only a Third of Musk’s Purchase Price

According to investment firm Fidelity, which recently reduced the value of its ownership share in the firm, Twitter is now only worth a third of what Elon Musk spent for the social media network.

Current Twitter Worth

Musk has admitted that the forty-four billion dollars he paid for Twitter, including $33.5 billion in stock, was excessive. He recently stated that Twitter is only worth less than half of what he spent on it. 

According to Fidelity Fund, he paid up to three times what Twitter is currently worth. Twitter is now worth 33% of what the billionaire paid for it. This estimate places Twitter’s current value at $15 billion. 

This information surfaced when Fidelity, which assisted Musk in financing the transaction, provided specifics on the value of its own Twitter share.

 In November, Fidelity initially lowered the value of its Twitter holding to 44% of the original acquisition price. Additional price reductions came after that in December and February.

The Twitter Struggle

Since Musk took over, Twitter has faced financial difficulties. In March, it was reported that the business’s advertising income had decreased by 50% due to Musk’s unreliable decision-making and problems with content filtering, which had saddled the company with $13 billion in debt. Selling Twitter Blue memberships has been an unsuccessful attempt to recover that money. Less than 1% of Twitter’s monthly users had joined by the end of March.

As per the Economic Times, the most recent downgrade reduces Musk’s $187 billion wealth by around $850 million. Despite Twitter’s problems, Musk’s fortune has increased by more than $48 billion this year, mainly due to a 63% increase in the share price of Tesla Inc.

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