‘s value has plummeted to one-third of what it was when CEO purchased it in October – from $45 billion to $15 billion in just six months.
A recent valuation from Fidelity of its stake in the social-media giant showed that the company has hemorrhaged value as their piece – $20 million in October – now sits at just $6.55 million.
In January, a Fidelity report indicated that the value was plummeting and had decreased to $7.8 million following a massive drop in November as well.
The financial news comes as Twitter and its controversial CEO, who purchased the company for $44billion in October, continue to make headlines, most recently for major glitches and big names leaving the app.
On Tuesday, if Musk did not stop engaging and interacting with an account parodying her.
Twitter’s value is now just one-third of what it was when CEO Elon Musk purchased it in October, some $15 billion compared to its sticker price of $45 billion last year
In their report released Tuesday, Fidelity estimates their stake in X Holdings Corp – Musk’s investment group – at $6,554,644.
The exact value of Twitter has not been released but Fidelity’s report implies an overall drop in valuation for the app.
Fidelity did not give a reason for a drop in its stake.
Musk has repeatedly acknowledged that he overpaid for Twitter when he bought it in October for a whopping $44 billion.
In late March, Musk ‘ of what it cost him to buy it in the fall.
In a company-wide email, he said the social media giant lost so much money since his initial purchase that it was valued at just $20 billion.
At the time, he also defended his decision to layoff thousands of employees to help cut costs and the sale of some assets.
The most recent financial analysis does not factor in new headlines including Musk naming Linda Yaccarino, NBCUniversal’s advertising chief, as his successor.
On May 12, Musk announced that Yaccarino ‘will focus primarily on business operations, while I focus on product design & new technology.’
In March, Musk said he believed Twitter is worth ‘less than half ‘ of what it cost him to buy it
The most recent financial analysis does not factor in new headlines including Musk naming Linda Yaccarino, NBCUniversal’s advertising chief, as his successor
Since Musk’s takeover, Twitter has found itself at the end of negative headlines for a series of issues.
A major hit came Tuesday when Musk was targeted by left-wing Democratic Rep.Ocasio-Cortez over a ‘verified’ social media account making fun of her.
The politician said she was ‘assessing’ what to do after the billionaire replied to a tweet from the parody account, ‘ Press Release (parody).’
‘FYI there’s a fake account on here impersonating me and going viral,’ AOC tweeted.’The Twitter CEO has engaged it, boosting visibility.’
She claimed the account was ‘releasing false policy statements,’ after previously tweeting about her boyfriend’s farts and other issues.
‘I am assessing with my team how to move forward,’ Ocasio-Cortez said.
‘In the meantime, be careful of what you see,’ she warned her followers.
Musk had recently replied to a tweet from the parody account, which wrote: ‘This might be the wine talking but I’ve got a crush on @ElonMusk.’
The Twitter CEO replied with a fire emoji.
The parody account had sent out similar jokes aimed at the congresswoman.
‘Every time my boyfriend farts — I make him plant a tree to offset his carbon emissions,’ one tweet reads.
On Monday, the account also told its 170,000 followers to ‘take a moment on this Memorial Day to remember all the citizens that lost their lives trying to come through our southern border.’
On Tuesday, Rep.Alexandria Ocasio-Cortez announced she would bid adieu if Musk did not stop engaging and interacting with an account parodying her.
Her message came after Musk replied to a tweet from the parody account, which wrote: ‘This might be the wine talking but I’ve got a crush on @ElonMusk’
A decimated staff and shrinking server capacity has been blamed for the disaster presidential campaign launch by Florida Gov.Ron DeSantis (right) on Twitter Spaces
Another hit came in the form of a massive tech glitch last week when Florida Governor Ron DeSantis attempted to announce his 2024 presidential run.
DeSantis’ attempt led to mass chaos as staff members scurried to get his planned Twitter Spaces announcement online as 500,000 people waited.
Twitter’s small Spaces staff numbers – originally 100 but now down to three – was blamed alongside a low server capacity.
Half a million people were waiting for more than 20 minutes for the event to start, and people who were able to join were frequently kicked out.
Spaces relies on servers from Amazon Web Services that are ‘insanely underprovisioned,’ the Daily Beast reported.
‘Practically no one remaining knows the current architecture in depth,’ another person said on the employee forum.
After the event Twitter’s head of engineering announced his resignation.
Twitter has also faced a series of lawsuits in recent months since Musk took over the company.
If February, Twitter claiming more than $14million in unpaid bills from landlords and vendors. It was reported in December that Musk had stopped paying rent on the company’s Seattle office.
Former executives who were part of the mass terminations the day Musk took over, also filed a against the company.They sued for more than $1million in legal bills.
The news hasn’t been all bad for Twitter since Musk’s takeover. Former Fox host Tucker Carlson announced plans for a new show on Twitter after he was terminated from his top-rated slot on the news network.
‘We bring some other things too, which we’ll tell you about.But for now we’re just grateful to be here. Free speech is the main right that you have. Without it, mpo agen you have no others,’ Carlson said
Musk has also promoted the ‘record high usage’ of Twitter users and said advertisers have returned.