Fidelity has substantially decreased the valuation of its stake in Elon Musk’s social media company, X Holdings, previously known as Twitter. This revaluation follows Musk’s acquisition of the platform for $44 billion with Fidelity’s backing. Initially valued at nearly $20 million in October 2022, Fidelity’s stake is now listed at approximately $5.6 million, marking a 71.5% decrease since the purchase, as reported in a November filing disclosed on December 30.
The markdown by Fidelity is not the first; the company previously slashed the valuation by 65% in October 2022, according to Axios. X Holdings has faced challenges under Musk’s leadership, notably losing significant advertisers such as IBM Corp, Walt Disney Co., and Apple Inc. These losses are attributed to Musk’s controversial remarks and concerns over the growing presence of extremist content and disinformation on the platform.
At the DealBook summit hosted by the New York Times, Musk sharply criticized advertisers who boycotted X Holdings. He accused them of “blackmail” and threatened the platform’s survival, bluntly telling these advertisers to “go f— themselves.”
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