Twitter’s worth down to just $15 bn under Musk: Report

Twitter is now worth solely about $15 billion, an enormous 33 per cent decrease than $44 billion Elon Musk and his co-investors paid to purchase the platform, the media reported on Wednesday.

Twitter has struggled financially since Musk took over.

The monetary providers large Fidelity estimated in its month-to-month report of portfolio valuations that Twitter is now worth just one-third worth of what Musk paid for the micro-blogging platform, studies Bloomberg.

Musk’s funding in Twitter is now worth $8.8 billion. The outgoing Twitter CEO spent over $25 billion to purchase an estimated 79 per cent stake within the firm in October final yr.

He earlier acknowledged that he overpaid to purchase Twitter, together with $33.5 billion in fairness.

“Although clearly myself and the opposite buyers are clearly overpaying for Twitter proper now, the long-term potential forTwitterin my opinion is an order of magnitude higher than its present worth,” Musk had stated throughout Tesla’s earnings name in October final yr.

“I’m excited concerning the Twitter state of affairs, as a result of clearly I do know their product extremely nicely,” he stated. “And I feel it is an asset that has kind of languished for a very long time however has unimaginable potential.”

Fidelity first lowered the worth of its Twitter stake in November, to 44 per cent of the acquisition worth. That was adopted by additional markdowns, the report talked about.

Fidelity’s Twitter stake, which now comes under Musk‘s X Holdings, was valued at virtually $6.55 million (as of late April).

Going via a churning with just about 1,500 workers left from an earlier 7,500-strong workforce, Twitter is discovering it troublesome to make robust earnings.

(With inputs from IANS)