Twitter is now worth 71.5% less than what Elon Musk paid for it

It can be said with 100% certainty that no entrepreneur wants to see one of his purchases lose more than 71% of its value in just over a year. Especially if he paid $44 billion for it. But this is exactly the situation Elon Musk faced in the case of the Twitter company.

Holding company Fidelity was one of the investors who helped Musk raise $44 billion to buy Twitter in April 2022. Fidelity Blue Chip Growth Fund’s latest update shows that Musk’s company is now worth 71.5% less than the $44 billion it was worth at the time of acquisition. The report says that Twitter is now valued at between $12 billion and $13 billion.

The fall in value includes a 10.7% reduction during November. It was then that Elon Musk in an interview with the New York Times very frankly told the advertisers who left Twitter where they should go. Businesses have begun pulling out of the platform in droves after an investigation found their ads were appearing alongside pro-Nazi content posted by users. Elon Musk added fuel to the fire by singling out Disney boss Bob Iger. He also later removed the Disney+ app from Tesla cars.

Few could have imagined the upheaval at Twitter after Elon Musk acquired the company. From the dismissal of thousands of employees, including a large part of specialists who were engaged in security and moderation, to the permission to return to previously blocked users and the change of the name and logo of the company. Yes, many changes and decisions could scare advertisers. Previously, the platform earned about $1 billion per quarter from advertising sales, but due to all the scandals, the entire advertising revenue for the past year is estimated at $2.5 billion.