From Elon Musk’s takeover of Twitterwhich became X, in October 2022, the social network suffered a spectacular devaluation, estimated today at 71%.
The fall of X.com, still called “Twitter” by many regulars, is quite spectacular. According to Fidelity data, compiled by Axiosmore than a year after the acquisition of Elon Musk, the famous social network saw its value drop to 12.5 billion dollars, a drop of 71.5% compared to the 44 billion dollars it was valid in the not so distant past.
Elon Musk pays dearly for his statements
This downward trend was already noticeable in October 2023, when the company’s value had fallen to $15 billion, according to fund manager Fidelity, even lower than the 56% plunge (to $19 billion) since acquisition. , announced by the company to its employees at the same time.
Elon Musk’s recent statements regarding the departure of advertisers have amplified the fall. Major companies such as Apple, IBM, Paramount, Ubisoft, Sony Pictures, Warner Bros and Disney have suspended their advertising on X.
The not very subtle “ screw you » launched by Musk to advertisers in front of the New York Times obviously didn’t help. Fidelity estimates that this controversy alone cost the social network a 10.7% loss in value in one month.
X (ex-Twitter) will have difficulty getting back on track
The current value of the social network is therefore three times lower than at the time of its acquisition by the owner of Tesla, SpaceX or even Neuralink. We do not know, while a Californian judge has just dealt a blow to Elon Musk over the moderation of the platform’s content in the United States, how the billionaire will help the social media bounce back from now on.
With rapid devaluation and loss of advertiser confidence, the future of X is more uncertain than ever. Taking the reins in October 2022, Elon Musk faced a series of challenges and hiccups, highlighting the complexities of maintaining the value of a social platform amid arguably tumultuous relationships with advertisers.
Source : Axios
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