Mutual fund Fidelity, which owns stake in social media platform, marks down value of its shares in disclosure obtained by Axios

The social media platform X has lost 71% of its value since it was bought by Elon Musk, according to the mutual fund Fidelity.

Fidelity, which owns a stake in X Holdings, said in a disclosure obtained by Axios that it had marked down the value of its shares by 71.5% since Musk’s purchase.

Musk acquired Twitter for $44bn in October 2022 and renamed the platform X in July 2023. Fidelity’s estimate would place the value of X at about $12.5bn.

The number of monthly users of X dropped by 15% in the first year since Musk’s takeover amid concerns over a rise in hate speech on the platform.

  • FlowVoid@lemmy.worldEnglish
    52·
    10 months ago

    That doesn’t make much sense.

    Suppose I have a trinket that everyone knows you are willing to pay $100 for.

    If I offer it to someone else, they should be willing to pay me something pretty close to $100. Because if I sell it to them for $99, then they can sell it to you for $100.

    And in fact as soon as Elon announced he wanted to buy Twitter, the stock price shot up. Other people wanted to buy it for nearly the same price, in order to sell it to Elon.