TECH - X's Value Drops 71%: Fidelity Links Decline To Elon Musk's Takeover And Advertiser Tensions | Benzinga
In a shocking revelation, asset management firm Fidelity has disclosed a 71% tumble in the value of X, formerly known as Twitter, since Elon Musk‘s takeover in October 2022.
What Happened: Fidelity reported that the value of X crashed by over 71% after Elon Musk’s acquisition, as mentioned in a recent Axios story. Musk bought the social media company for $44 billion in 2022.
Fidelity, an equity stakeholder in X, has been steadily reducing the value of its stake in the aftermath of Musk’s takeover, as reported by Reuters. In May 2023, Fidelity valued X at around $15 billion, merely one-third of Musk’s purchase price.
The year 2023 was marked by turbulence for X, particularly in relation to its ties with advertisers. Numerous companies, including Walt Disney Co (NYSE:DIS) and IBM (NYSE:IBM), pulled their ads from X following a contentious post from Musk. Despite Musk’s subsequent apology, he took a shot at the advertisers for their boycotts.
During a November ...