South Africa tour of India 2019
Fidelity releases a shocking report about Musk's Twitter worth.
Elon Musk, who owns Twitter, is awkward because the social media company is now being shockingly valued at almost three times less than the $44 billion Musk paid to buy it.
A Fidelity Fund thinks that the value could be less than what it was in October when Musk bought the company, which has made him look bad in the public eye and is a clear example of a big financial and business move that went wrong.
At the end of April, Fidelity's Blue Chip Growth Fund said that its share in Twitter was only worth $6.55 million. This is $19.66 million less than what the stake was in October. Fidelity says this just means that Twitter is not worth more than $15 billion.
Fidelity did not give a reason right away, but how Musk ran the company could have affected the value. During his time as CEO, Musk fired most of the company's employees, lost a lot of advertising, and started charging $8 monthly for a real blue tick. This has led to many well-known accounts being faked.
But it's important to note that the Fidelity story is from April 28. After that, Musk announced Linda Yaccarino, a former advertising executive at NBCUniversal, as the new CEO. Musk said he would have important jobs as executive chairman and chief technology officer.
Comments