TECH - Fidelity Raises X Valuation: Here's How Much It's Fallen From Elon Musk's Twitter Purchase Price | Benzinga
Fidelity kept its stake in Twitter, now known as X, after billionaire Elon Musk's purchase in 2022.
The firm holds a position in the social media platform via a mutual fund, Fidelity Blue Chip Growth Fund (FBGRX). It previously marked down its valuation several times in 2023 before raising the valuation in mid-2023 for three consecutive months.
What Happened: According to Axios, Fidelity recently increased the value of Twitter — or X Holdings — in the fund, by 11% in the month ending December.
The firm holds the stake at a 68% discount to the original purchase price by Musk. This would imply a valuation of around $14.1 billion from Fidelity.
Along with the value of Twitter being less than the $44 billion buyout price according to Fidelity's valuation, the carrying value is also below where Twitter stock originally traded before Musk began discussing an acquisition, Axios' Dan Primack previously said.
Fidelity does not make public the way they determine the value of private ...