In a rather awkward situation for Elon Musk, the owner of Twitter, the social media company is now being shockingly valued at almost three times lesser price than the amount of $44 billion that Musk shelled out to acquire the company.
A Fidelity Fund has estimated that the value could be much lesser than in October when Musk acquired the company that has brought him public disrepute and stands as a glaring example of a huge financial and business decision gone wrong.
Fidelity’s Blue Chip Growth Fund reported that its stake in Twitter was merely worth $6.55 million at the end of April. That is down by $19.66 million from the stake in October. This simply means that Twitter is not worth more than $15 billion, according to Fidelity.
While Fidelity did not provide any immediate reason, the way in which Musk handled the company might have impacted the valuation. During his time as CEO, Musk chucked out much of its staff, lost many advertisers, and rolled out paid subscriptions at $8 for a genuine blue tick. This has led to impersonations of many high-profile accounts.
However, it has to be noted that the Fidelity report is from April 28, after which Musk announced a new CEO, former NBCUniversal advertising executive Linda Yaccarino. Meanwhile, Musk said he would play significant roles as executive chairman and chief technology officer.
