The social network’s shares have dropped by 79% since the time before the businessman acquired it until August of this year. The reasons for the fall.
Fidelity’s stake in X is worth $4.19 billion, valuing the company at $9.4 billion.
Prior to Musk’s acquisition, Fidelity’s initial stake in the platform was $19.6 million, down nearly 79% as of the end of August.
The investment firm has cut its stake multiple times this year, cutting its stock by 10.2% in January and another 5.7% in February, despite raising its estimates by 11% in December.
Elon Musk’s net worth
Musk is the richest person in the world, with a fortune valued at $269.8 billion , according to the latest estimates from this outlet.
Big number: $24 billion is what the eight largest investors in X have lost in combined value since Musk bought the company as of Sept. 1, according to the report. The Washington Post.
The causes of the fall
Musk bought what was then Twitter in October 2022 after a lengthy transaction process, which included the company suing Musk after he tried to reverse its $44 billion offer.
The company’s revenue fell 50% after the acquisition due to a «massive drop» in advertising, according to Musk.
After renaming Twitter as X, the entrepreneur announced a series of changes to the platform: a premium subscription service that gives users verification badges, the ability to edit posts, and priority rankings in conversations and searches. Those changes sparked a backlash from users, who claimed that accounts could now trick users into paying for verification.
Musk is reportedly requiring X employees to write one-page reports detailing their contributions to the company before being granted stock options. He previously told employees that the stock could be cashed out regularly, just as his SpaceX employees are, according to The Verge.
