BUSINESS

Twitter is worth 33% of what Musk paid

By Athik Saleh

1

Twitter's value plummets

Twitter's value has decreased by around 67% since Elon Musk spent $44 billion to acquire it last year, according to Fidelity.

2

Financial woes

Musk's attempts to turn Twitter into a $250 billion "everything app" have not been successful, and the platform has struggled financially.

3

Fidelity reduces value

The value of Fidelity's stake in X Holdings Corp. (formerly Twitter) dropped to $6.55 million from $7.8 million. Twitter's new valuation is based on that. 

4

Acknowledgment

Elon Musk admitted overpaying for Twitter. He offered stock grants to employees based on a valuation of less than half of what he paid.

5

Ad spending

Twitter's valuation is falling due to a 20% decrease in ad spending by top 50 advertisers, caused by poor content moderation and erratic decisions. 

6

Twitter Blue

Twitter Blue, a paid tier introduced by Musk to counter the ad revenue downturn, has only moderately succeeded with around 619,858 users subscribed by April end.

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