Twitter is only worth a third of what Elon Musk paid for it

Last October, Elon Musk closed a deal to buy Twitter for $44 billion. At that time, it was a price that many appreciated a lot of money. Musk himself I confess that he and his colleagues may have overpaid for the social media platform. However, he persisted with the acquisition, determined to turn it around In the Everything app That, according to generous appreciationIt could eventually be worth about $250 billion.

Now, just over half a year later, Musk’s labor is not only paying off, it appears to be pushing Twitter’s market capitalization in the opposite direction. This week, financial services giant Fidelity estimated in Monthly disclosure That microblogging site is worth about 33 percent of what Musk initially paid — an estimate that would put its value at Almost 15 billion dollars. Fidelity arrived at the valuation based on a reduction of its stake in the company.

Bloomberg, which was originally mentioned Fidelity’s rating notes, “It is unclear how Fidelity reached its new, lower rating or whether it receives any non-public information from the company.”

So this… uh, not cool. Under Musk’s leadership, Twitter has made more than a few bizarre efforts to make money — including an ill-fated attempt to win people over Pay to verify profile. Twitter has also tried to cut costs by firing large portions of its workforce, but the platform has suffered from hikes and other financial stocks — including a significant drop in ad revenue.

Musk himself seems to understand that Twitter’s financial situation is not good. in late March, A note has been leaked That showed the billionaire believed Twitter was worth about $20 billion at the time, or less than half of what he initially paid for it.