Twitter May be Worth Only a Third of its Pre-Musk Value, Fidelity Says
A Fidelity fund has significantly reduced its valuation of Twitter, suggesting that the social media platform may be worth only a third of its value compared to when Elon Musk acquired it in October.
The Blue Chip Growth Fund, managed by Fidelity, disclosed that its stake in Twitter was valued at $6.55 million at the end of April, down from the $19.66 million reported in October.
This implies that Twitter’s overall worth may be around $15 billion, significantly lower than Musk’s $44 billion purchase price. The reason for the markdown was not provided in the disclosure.
However, it coincides with public criticism of Musk’s decision-making at Twitter. During his tenure, the company has faced layoffs, loss of advertisers, and challenges with its paid subscription service and user verification process.
Fidelity has previously marked down Twitter’s value, with successive reductions reported in November and January. The latest figures were reported by Bloomberg, based on the April 28 Fidelity report, which does not reflect recent leadership changes at Twitter.
Musk recently announced the appointment of Linda Yaccarino as Twitter CEO, while he will maintain roles as executive chairman and chief technology officer.
