Acquired for $44B, Elon Musk's X now valued below $10B
Fidelity, the investment firm that helped Elon Musk buy Twitter, which is now called X, has slashed its valuation of the company by a big margin. The latest from Fidelity's Blue Chip Growth Fund reveals a massive markdown of 78.7% in its stake in X as of the end of August. This adjustment comes after a previous devaluation in July when Fidelity estimated its shares in X at about $5.5 million.
Fidelity's stake in X now valued at $4.18 million
The Blue Chip Growth Fund's latest report reveals that Fidelity now puts its stake in X at around $4.18 million. This is a big drop from the initial investment of $19.66 million that Fidelity made in X through the Blue Chip Fund, according to regulatory filings. The new valuation suggests that X is now worth about $9.4 billion, a steep fall from the $44 billion purchase price when Musk acquired it.
Fidelity and X remain silent on valuation markdown
Attempts to reach out to Fidelity and X for comments on the big markdown were unsuccessful. This opens the door to speculation about the reasons behind this drastic reduction in X's valuation, which has now fallen to less than a quarter of its original purchase price under Musk's ownership.
