Twitter’s owner, Elon Musk, is facing a major shock since he bought the company. In point of fact, Twitter is only worth $15 billion at its current valuation, which is a reduction of 66 percent from the $44 billion that Elon Musk and his co-investors spent to purchase the microblogging site.
Since Musk took over as CEO, Twitter has been experiencing significant financial difficulties. According to an estimate provided by the multinational financial services company Fidelity in its most recent monthly report on portfolio values, the microblogging platform is currently only worth one-third of what Elon Musk spent for it.
The value of Musk’s investment in Twitter is currently valued at $8.8 billion. In October of last year, the CEO who is stepping down from his position at Twitter spent more than $25 billion to purchase an estimated 79 percent interest in the firm. In the past, he has recognized that the purchase price of Twitter, which included $33.5 billion in stock, was excessive. During the results call for Tesla in October of last year, Elon Musk remarked, “Obviously other investors and I are overpaying for Twitter right now.” He went on to say that he believes the long-term potential for Twitter is greater than its present worth.
Musk stated, “I’m excited about Twitter’s position, obviously I know their product incredibly well,” adding that he was excited about the company’s current position. In addition, I believe that it is an asset that has, for a considerable amount of time, been underestimated while having enormous potential.”
In November, Fidelity decreased the value of its Twitter stock to 44 percent of the original acquisition price. As of the end of April, the value of the Twitter share that had belonged to Fidelity and is now controlled by Musk’s X Holdings was around $6.55 million.
