Elon Musk’s X net worth is now less than a third of the price he paid in 2022, Bloomberg News reported citing Axios.
Elon Musk had acquired X, formerly Twitter for $44 billion in October 2022 but now the company’s valuation is down to $19 billion.
In the latest development, Fidelity, which helped the billionaire to complete the $44 billion purchase, marked down the value of its shares in X Holding.
Fidelity cut by a further 11% the value of its holding in X as of the end of November 2023.
Elon Musk backs Antisemitic post, says, ‘You have said the actual truth’
Fidelity believes that X is worth 71.5% less than at the time of purchase.
Musk’s hostile acquisition of Twitter in 2022 was followed by a cascade of abrupt changes, from mass layoffs and shuttering of international offices to upending the platform’s moderation policies and verification system.
As per the Bloomberg report the upheaval put off advertisers and 2023’s revenue from ad sales is estimated to come in at $2.5 billion, far below the prior rate of roughly $1 billion per quarter.
Elon Musk to meet Israeli President amid accusations of anti-Jewish hatred
X has struggled to retain advertisers since Musk acquired the company. In 2023, Elon Musk endorsed an antisemitic post on the service. Responding to an X user on Wednesday who said that it’s unfair to make generalizations about Jewish communities promoting hatred toward white people, Musk wrote that the person was “right that this does not extend to all Jewish communities, but it is also not just limited to ADL.”
‘Go f**k yourself’: Elon Musk’s sharp take on advertisers leaving X
Subsequently, major brands including Apple, Walt Disney, Walmart, and Warner Bros Discovery suspended their ads on X.
Elon Musk visits Israel to discuss hostage plight and rising antisemitism
Musk apologized for his post during an interview at a New York Times DealBook event but hurled expletives against advertisers that suspended their ads, accusing them of “blackmail.”
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Published: 02 Jan 2024, 09:20 AM IST