X is now worth less than a third of the price paid by Musk – 01/02/2024 – Market

Elon Musk’s X is now worth less than a third ($14.6 billion) of the price the billionaire paid for the old Twitter ($44 billion), according to the website Axios, citing information released by Fidelty.

The investment firm, which helped Musk complete the $44 billion purchase, reduced the value of its X stake by another 11% by the end of November, according to Axios, citing the latest update to Fidelity’s Blue Chip portfolio Growth Fund.

This is the latest in a series of downgrades for Fidelity after privately held X struggled to win back advertisers in 2023.

Musk’s acquisition of Twitter in late October 2022 was followed by a series of abrupt changes, from drastic layoffs and closures of international offices to changing the platform’s moderation policies and verification system.

The unrest has driven away advertisers, and 2023 ad sales revenue is estimated at $2.5 billion, far below the previous rate of roughly $1 billion per quarter ($4 billion annually), Bloomberg News reported in last month.

In November, Musk said he criticized advertisers who dropped X due to its support for an anti-Semitic post.

Earlier that month, Musk agreed with a post that said Jews had a “dialectical hatred” for white people. The message has since received criticism from the White House as well as several Tesla investors. Major advertisers, including Disney and Apple, have distanced themselves from the platform.

richest in the world

Despite X’s tumultuous management, Elon Musk ended 2023 as the richest person in the world after overtaking French luxury magnate Bernard Arnault, owner of the LVMH group

The CEO of Tesla and owner of the X increased his wealth by US$95.4 billion last year until December 28th, driven by the success of Tesla and SpaceX.

By 2022, Musk’s fortune had decreased by $138 billion. His fortune now stands at US$232.39 billion (R$1.1 trillion), more than US$50 billion above Arnault, whose wealth was affected by the global slowdown in demand for luxury goods, which affected shares from LVMH, owner of brands such as Louis Vuitton and Dior.