According to Fidelity, which has once again devalued the value of its Twitter share, the social media site is now only worth 33% of what Elon Musk paid to get it.
Fidelity reduced the value of its Twitter investment to 44% of the original purchase price in November of last year. In February and December, there were more markdowns.
Musk has acknowledged that the $44 billion price tag, which included $33.5 billion in stock, he paid for Twitter was exorbitant. He recently claimed that the value of Twitter is now just approximately 50% of what he paid for it.
It is unknown how Fidelity arrived at its new, lower valuation or whether it receives any non-public information from the corporation, according to a Bloomberg story.
According to the Bloomberg Billionaires Index, which utilises Fidelity’s valuation to determine the value of Musk’s stake, his investment in Twitter is now worth $8.8 billion, the story adds. Last year, Musk invested more than $25 billion to buy an estimated 79% interest in the business.
Since Musk became CEO, Twitter has experienced financial problems. A failed attempt to recoup that money was the sale of Twitter Blue subscriptions. By the end of March, fewer than 1% of Twitter’s monthly users had signed up.
Fidelity has reduced the value of its interest in the social media company once more after marking down the price of Twitter in November, December, and February.