Twitter is only worth a third of what Elon Musk paid for it, major asset manager says

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Twitter is continuing to plummet in value under Elon Musk’s leadership, Fidelity says.

Twitter has dropped in value since Elon Musk bought the company, according to Fidelity.
Fidelity estimated that Twitter is only worth a third of what Musk paid for it, per a Bloomberg assessment.
The finance company owns an equity stake in Twitter but has been routinely lowering its value.

Twitter is continuing to plummet in value under Elon Musk’s leadership, according to financial-services corporation Fidelity, as reported by Bloomberg.

According to a Bloomberg assessment of the company’s recent monthly holdings report, the asset manager estimated that Twitter was only worth around $15 billion, roughly 33% of the $44 billion Elon Musk paid to acquire it in October.

Fidelity owns an equity stake in Twitter but has been routinely lowering the stake’s value since Musk acquired the company, Reuters reported.

The finance giant first lowered the price of its shares by 44% in November, per Bloomberg, one month after Musk purchased the social media company. The shares were later marked down further in December and February, the outlet said.

In March, Musk appeared to acknowledge a substantial drop in Twitter’s value when he offered stock grants to staff that valued the company at $20 billion, The New York Times reported, citing an email sent to employees. The valuation put the company at less than half of what the billionaire originally paid for it.

Even before purchasing the company, Musk said Twitter was overvalued and spent months trying to back out of the deal. However, since his takeover, Twitter has seen a substantial drop in advertising revenue, which may have also contributed to the company’s drop in value.

Musk has also laid off thousands of Twitter staff and cut employee headcount down by almost 90% of what it was pre-takeover. The company’s headcount for full-time employees was just 1,000 people at the start of the month, two people familiar with the company told Insider’s Kali Hays.

Representatives for Twitter did not respond with a comment that addressed Insider’s question. 

Read the original article on Business Insider

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