Business Standard

Twitter may worth one-third what Musk paid for it due to down investment

The billionaire financed the purchase with funds including loans from a group of banks. Musk has said the USD 44 billion price tag for Twitter was too high but that the company had great potential

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AP Washington

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Twitter may now be worth one-third of what Elon Musk paid for the social media platform just seven months ago.
Financial services company Fidelity has reduced the market value of its equity stake in Twitter for a third time, now putting it at USD 6.55 billion. That's down from the nearly USD 20 billion Fidelity valued its stake at in October.
It is unclear how Fidelity came up with its valuation figures, but as a public company it's required to provide investors with updates on its holdings. Because Twitter is a private company now called X Holdings Corp., information about its finances can't be verified.
Musk took control of Twitter in October, after a protracted legal battle and months of uncertainty. The CEO of Tesla, who also owns SpaceX, bought Twitter for USD 44 billion.
The billionaire financed the purchase with funds including loans from a group of banks. Musk has said the USD 44 billion price tag for Twitter was too high but that the company had great potential.
By April Musk was telling the BBC that running Twitter has been quite painful but that the social media company is now roughly breaking even after he acquired it late last year. Musk predicted at the time that Twitter could become cash flow positive in the current quarter if current trends continue.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: May 31 2023 | 10:23 PM IST

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