- cross-posted to:
- technology@beehaw.org
- cross-posted to:
- technology@beehaw.org
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.
It’s dead, how has it retained even this much? I think he would have a hard time selling it for even a fraction of that valuation.
Well my suspicion is the main reason for the name change is to preserve some of the value of the Twitter brand. When Musk’s site inevitably dies, someone else can buy it up cheap.
If you bought it you could theoretically undo the Musk bullshit and get the company back on track towards profitability. That’s definitely worth something to someone.