It’s never nice when you overpay for something. So spare a thought for
Tesla
CEO Elon Musk as he reflects on his $44 billion purchase of Twitter.
The social media platform is worth just a third of what Musk paid for it, according to Fidelity after it marked down the value of its stake in the company.
Fidelity valued its Blue Chip Growth Fund’s stake in Twitter, now referred to as X Holdings Corp, at $6.55 million, as of April 28, in a monthly disclosure. The stake was valued at around $20 million at the end of October, shortly after Musk’s purchase, before being cut to $8.63 million in November, Reuters reported.
The Fidelity valuation implies Twitter as a whole is now worth around $15 billion. Musk has said publicly that he overpaid for the social media platform but he’s also claimed it could become a super app worth $250 billion. In March, the billionaire suggested in an email to Twitter employees the company was worth $20 billion—less than half his purchase price.
The Tesla (ticker: TSLA) CEO said last month that Twitter was close to turning a profit after the return of advertisers and months of cost cutting, including mass layoffs. He told the BBC that Twitter was now “roughly breaking even,” and that it only had months left as a going concern when he took over.
Musk will step down as Twitter CEO in the coming weeks, handing over to Linda Yaccarino.
Write to Callum Keown at [email protected]
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