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Twitter: Twitter is now valued at only $15 billion, which is 66 percent less than the $44 billion paid by Elon Musk and his co-investors to acquire the platform. Twitter has been struggling financially since Musk took over. According to Bloomberg’s report, financial services giant Fidelity, in its monthly report of portfolio valuation, has estimated that the price paid by Elon Musk for the micro-blogging platform is now only one-third.
Elm Musk’s investment in Twitter decreased
Musk’s investment in Twitter is now worth $8.8 billion. The outgoing Twitter CEO spent more than $25 billion to acquire an estimated 79 per cent stake in the company in October last year. He had earlier also admitted that he had overpaid to acquire Twitter, including $33.5 billion in equity.
Elon Musk had said about taking on higher valuation
Musk said during Tesla’s earnings call in October last year, obviously me and other investors are overpaying for Twitter right now, I think the long-term potential for Twitter is more than its current value. “I’m excited about the position of Twitter, obviously I know their product incredibly well,” he said. And I think it’s an asset that’s long overdue but has incredible potential.
Fidelity reduced the value of its Twitter shares to 44 per cent of the purchase price in November. Fidelity’s Twitter stake, which now comes under Musk’s X Holdings, was valued at around $6.55 million (as of the end of April).
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