The current value of Twitter is now only approximately one-third of the $44 billion that Elon Musk paid to acquire the social media giant last year.
Since assuming control of Twitter, Elon Musk has witnessed a persistent decline in its value, which has now worsened according to a new valuation report.
Elon Musk Twitter Gamble Backfires
Renowned social media platform Twitter has experienced a significant decrease in its overall worth. Elon Musk, the billionaire entrepreneur known for his ambitious ventures such as Tesla and SpaceX, is facing the repercussions as the value of his investment plummets significantly.
Fidelity, one of the largest investment management firms, has reported that the social network is currently valued at approximately one-third of its original purchase price.
Last October, Musk acquired the social network for a staggering $44 billion, assuming leadership of the prominent company. However, Axios reveals that Fidelity has now downgraded the value of Twitter in its most recent monthly report, estimating its worth to be around $15 billion.
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Exclusive Features Unveiled
Remarkably, the current valuation of Twitter is approximately 33% lower than Musk’s purchase price from last year, indicating that it is now worth only a third of what he paid.
It is important to note that the Fidelity report solely covers the month of April, and it remains uncertain whether the decline in value will reverse or slow down in May, particularly considering Musk’s significant announcement this month.
Surprisingly, the Chief Executive Officer position will be filled by Linda Yaccarino, who previously served as the NBCUniversal Advertising Sales Chair before joining the prominent social network.
While Musk has demonstrated a bold and visionary approach, revolutionizing industries such as electric vehicles (EVs) and space exploration, his entry into the realm of social media seems to have encountered obstacles. The exact reasons behind Twitter’s fall from grace are still a subject of debate, with various speculations circulating.
Musk’s takeover resulted in the loss of nearly half of Twitter’s major advertisers, many of whom have yet to return to the platform.
In an effort to compensate for this, the billionaire magnifies the offerings of Twitter Blue, the platform’s subscription-based service, by introducing more enticing features for users. This includes the sale of the once highly coveted blue checkmarks and the introduction of exclusive features such as longer tweets and extended video uploads.
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