Global Courant 2023-05-31 21:37:55
Twitter may now be worth a third of what Elon Musk paid for the social media platform seven months ago
FILE – Twitter logos hang outside the company’s San Francisco offices Monday, December 19, 2022. Twitter may now be worth a third of what Elon Musk paid for the social media platform seven months ago. Financial services firm Fidelity has cut the market value of its equity stake in Twitter to $6.55 billion for the third time. (AP Photo/Jeff Chiu, File)
The associated press
Twitter may now be worth a third of what Elon Musk paid for the social media platform seven months ago.
Financial services firm Fidelity has cut the market value of its equity stake in Twitter to $6.55 billion for the third time. That’s lower than the nearly $20 billion Fidelity valued in October.
It’s unclear how Fidelity got its valuations, but as a publicly traded company, it’s required to keep investors informed about its holdings. Since Twitter is a private company that is now X Holdings Corp. is called, information about the finances cannot be verified.
Musk took control of Twitter in October after a lengthy legal battle and months of uncertainty. The CEO of Tesla, which also owns SpaceX, bought Twitter for $44 billion.
The billionaire financed the purchase with, among other things, loans from a group of banks. Musk has said that the $44 billion price tag for Twitter was too high, but that the company had great potential.
In April, Musk told the BBC that running Twitter has been “quite painful,” but that the social media company is now about breaking even after taking it over late last year. At the time, Musk predicted that Twitter could become “cash flow positive” in the current quarter “if current trends continue.”
