Elon Musk paid $44 billion to own Twitter . In more than 7 months of bad decisions, it is now worth 33%.
Elon Musk spent 44 billion dollars to buy Twitter in October 2022. In more than 7 months at the helm, however, he has seen how this social network has fallen in value to 15 billion.
According to financial services giant Fidelity, the platform is worth about 33% of what Musk initially paid, noting that the mogul is not taking the necessary directions to push the value of the company in the market.
Twitter in decline
The new valuation of Twitter has even caused the firm to enter into a conflict with Bloomberg , the most common in this type of information.
The second states that “it is not clear how Fidelity arrived at its new lower valuation or if it receives non-public information from the company.”
According to the investor, “the evaluation is based on a reduction of its own participation in the company.”
Regardless of this, for one of his main investors to reduce money in the company due to low forecasts in this regard is bad news for Musk. Of course, the billionaire knows that the 44 billion dollars that he paid was never real : it was a high price to pay to initiate the great change that he planned to make.
But certainly, Twitter has struggled financially since Tesla’s CEO came to the company. In addition to making decisions against his own suppliers, such as who rents the company’s offices in San Francisco , or even reducing their toilet paper , Musk has made companies that advertised on the social network move away by up to 50% , causing the drop in revenue to the company.
Added to this is the fact that the sale of Twitter Blue subscriptions, a model that included the profile verification check, does not even reach 1% of the platform’s monthly users.
Every time less
With the new valuation of Twitter, the estimated net worth of Elon Musk also falls .
First, the investment of the South African to buy the social network was directly 25 billion dollars, which now averages 8.8 billion dollars.
This also causes the total amount of the tycoon’s fortune to drop by $850 million. Despite this, the increase in Tesla ‘s shares is causing there to be no negative effect on said economic power.