Fidelity Reports Elon Musk X Down 71 In Value Post Takeover
After Elon Musk’s high-profile acquisition of Twitter, now renamed X, for $44 billion in October 2022, asset manager Fidelity has reported a substantial 71.5% decrease in the company’s value.
This valuation dip reflects a turbulent year for the social media platform, especially concerning its financial health and advertiser relationships.
Throughout 2023, X has faced numerous challenges, notably a sharp decline in advertising revenue, contributing to negative cash flow and a burdened financial state. Musk himself acknowledged the severe impact of a 50% advertising revenue drop coupled with the platform’s existing debts.
The deterioration in X’s relationship with advertisers reached a peak when prominent companies, including Disney and IBM, withdrew their advertising following Musk’s controversial endorsement of an antisemitic post.
Despite later apologizing, Musk vehemently criticized the advertisers’ decision, implying it could lead to the company’s demise. These developments highlight the volatile nature of X’s post-acquisition journey and the significant hurdles it faces in regaining stability and value.
