Value of X has fallen 71% since purchase by Musk and name change from Twitter.

The social media platform X has lost 71% of its value since it was bought by Elon Musk, according to the mutual fund Fidelity.

Fidelity, which owns a stake in X Holdings, said in a disclosure obtained by Axios that it had marked down the value of its shares by 71.5% since Musk’s purchase.

Musk acquired Twitter for $44bn in October 2022 and renamed the platform X in July 2023. Fidelity’s estimate would place the value of X at about $12.5bn.

The number of monthly users of X dropped by 15% in the first year since Musk’s takeover amid concerns over a rise in hate speech on the platform.

Since Musk’s takeover, X has cut at least 50% of staff and reduced moderation. And in September, the European Union issued a warning to Musk after it found that X had the highest ratio of disinformation posts of all large social media platforms.

Source: www.theguardian.com

Share: