Twitter’s value dropped to $15 billion under Musk’s tenure: Report

New Delhi | Twitter is now valued at just $15 billion, 66 per cent less than the $44 billion Elon Musk and his co-investors paid to acquire the platform. Twitter has been struggling financially since Musk took over.

Financial services giant Fidelity, in its monthly report on portfolio valuations, estimated that the micro-blogging platform is now worth just one-third of what Musk paid for it, reports Bloomberg.

Musk’s investment in Twitter is now worth $8.8 billion. The outgoing Twitter CEO spent more than $25 billion to acquire an estimated 79 percent stake in the company in October last year.

He previously admitted that he overpaid to acquire Twitter, including $33.5 billion in equity.

“Obviously I and other investors are overpaying for Twitter right now, I think the long-term potential for Twitter is more than it’s current value,” Musk said during Tesla’s earnings call last October.

“I’m excited about Twitter’s position, obviously I know their product incredibly well,” he said. And I think it’s an asset that’s been undervalued for a long time but has incredible potential.

Fidelity downgraded its Twitter stock to 44 percent of the purchase price in November.

Fidelity’s Twitter stake, now owned by Musk’s X Holdings, was valued at around $6.55 million (as of the end of April).

–IANS

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