📣 Fidelity Cuts Valuation of Elon Musk's Social Media Company
posted 30 Sept 2024
Fidelity, an investment company, reports that the value of X has plummeted by 4х since Elon Musk's purchase. Musk bought the social platform for $44 billion, utilizing personal funds, loans, and other resources, before taking the company private—removing it from the stock market.
Fidelity, which invested approximately $19.66 million in the deal, has since reduced the valuation of its stake by 78.7%, down to $4.18 million. According to Fidelity’s calculations, X is now worth around $9.4 billion. Over the last two years, the company has been steadily decreasing its valuation of the platform.
The sharp decline in X's value is likely tied to a series of controversies and changes made by Musk. Among the most notable was the rebranding of Twitter to X and the introduction of a paid subscription model, which drew criticism from users loyal to the platform’s original format and features.
Furthermore, Musk faced tensions with major advertisers, many of whom have stopped placing ads on X due to his controversial comments, the high number of bots, and the spread of misinformation. In August 2024, Musk responded by filing a lawsuit, accusing the advertisers of collusion and antitrust violations.
