Twitter's value is now only worth one-third of what Elon Musk paid when he bought the social media giant for $44 billion last year.
Since Musk took over Twitter, its value persistently plummeted. And now, a new valuation report says it has gotten worse.
Twitter's Value: Elon Musk's Investment Now Only Worth a Third
Twitter, the renowned social media service, has experienced a significant drop in value, according to Bloomberg.
The billionaire entrepreneur, Musk, known for his ambitious ventures like Tesla and SpaceX, is feeling the heat as the value of his investment drastically plummets. Fidelity, one of the largest investment management firms, says the social network is now only worth roughly one-third of its original purchase price.
The tech billionaire purchased the social network for a whopping $44 billion last October as he took over the giant firm. But this time, Axios reports that Fidelity has marked down the value of Twitter in its latest monthly report. Its value is now only about $15 billion.
Bloomberg did the math. And it turns out that the current value of the Blue Bird is roughly 33 percent lower than Musk's purchase price last year. In other words, it is only worth a third of what he paid for.
It is worth noting, though, that the Fidelity report only covers the month of April. It remains to be seen if the plummeting value reverses or slows down in May since Musk made a huge announcement this month.
The Chief Twit surprisingly confirmed that a new Chief Executive Officer is entering the picture as Linda Yaccarino takes his spot. She used to be the NBCUniversal Advertising Sales Chair before joining the giant social network.
Elon Musk and Twitter
With a bold and visionary approach, Musk has revolutionized industries like electric vehicles (EVs) and space exploration. But despite that, his foray into the world of social media seems to have hit a stumbling block. The reasons behind Twitter's fall from grace are still up for debate, but speculation abounds.
As per Gizmodo, Musk's takeover led to losing roughly half of the biggest advertisers on Twitter. A bulk of them have yet to make their comeback.
So to make up for it, the billionaire ramps up its subscription-based offering, Twitter Blue, by making it more enticing for users. He started selling the once highly coveted blue checkmarks. And on top of that, the service also started providing exclusive features, including posting longer tweets and uploading longer videos.
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