Twitter Value Drops According to Fidelity

According to Fidelity, which recently reduced the value of its stake in the company, Twitter is now only worth a third of what Elon Musk paid for the social media platform.

Earlier this year, Musk, who has admitted he overpaid for Twitter, gave employees new equity grants valued at $20 billion. It's unclear how Fidelity arrived at its revised estimate or whether the company provided it with any non-public information.

In November, Fidelity first lowered the value of its Twitter holdings to 44% of the original purchase price. Additional price reductions came after that in December and February.

Since Musk took over, Twitter has faced financial difficulties. Musk claimed in March that the company's advertising revenue had decreased by 50% as a result of his unpredictable decision-making and difficulties with content moderation, which had saddled the company with $13 billion in debt. Selling Twitter Blue subscriptions has been an unsuccessful attempt to recover that money. Less than 1% of Twitter's monthly users had signed up by the end of March.

According to the index, the most recent markdown subtracts about $850 million from Musk's $187 billion fortune. Despite Twitter's problems, Musk's wealth has increased by more than $48 billion this year, largely as a result of a 63% increase in the share price of Tesla Inc.