The social network The fall amounts to more than 71% according to fund manager Fidelity and X does not seem ready to recover.
Nothing is going well for him social networkformerly known as Twitter. Since its purchase by billionaire Elon Musk in October 2022 for $44 billion, the platform has continued to lose value. Barely a month after the transaction, FidelityA asset manager who owns a stake in Twitter under the name of X Holdings Corp, reduces its valuation by more than 55%. Since then, the company has regularly revised the value of the service downwards, up to 2/3 less in June 2023.
It is again she who now affirms that X is worth 71.5% less than when it was bought back. This means that the social network is estimated at $12.5 billion approximately. A descent into hell accelerated by the multiple escapades that the service has experienced, particularly with the advertising. In June 2023, Elon Musk explained that X was in a delicate situation following a significant drop in advertising revenue, about 50%. It hasn’t gotten any better since then, on the contrary.
Twitter has lost more than 71% of its value since October 2022
In November 2023, companies like Disney Or IBM withdraw their advertisements from the social network following an anti-Semitic slip by Musk. He apologizes shortly after, but the damage is done. The problem is that he did it again during a summit, during an interview with the New York Times, saying that advertisers threatening to leave X could “go fuck themselves”. Obviously, this exit does not go unnoticed and does not help the platform to recover.
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Especially since during the same event, the billionaire himself admitted that “this advertising boycott will kill the company”. For the moment, X has not reacted to this new devaluation from Fidelity. It is difficult to know what this implies in the more or less near future, but it is certain that the new CEO of the social network is starting 2024 with work on her plate.
Source: Axios