Report: Twitter Now Worth a Third of $44B Purchase Price

Fidelity's latest valuation may put investors on edge
By Jenn Gidman,  Newser Staff
Posted May 31, 2023 6:37 AM CDT
Report: Twitter Now Worth a Third of $44B Purchase Price
Elon Musk is seen before his talks with French President Emmanuel Macron on May 15 at the Elysee Palace in Paris.   (AP Photo/Michel Euler, Pool, File)

Elon Musk famously forked over $44 billion to become the owner of Twitter last year, but a new valuation from one of its outside investors may set all of the other investors squirming. Forbes reports that Fidelity has valued the social media platform at only about $15 billion, or about one-third of the October purchase price. Bloomberg notes that although it's not clear how Fidelity arrived at this figure, or whether Fidelity had any inside information to come to its assessment, this isn't the first time the financial services group had already slashed the value of its own stake.

For context, Fidelity's stake in Twitter before Musk took the helm was about $20 million. By the end of November, that stake had fallen to $8.6 million (a 56% reduction), and by Jan. 31, about $7.8 million, per Reuters. As of April 28, it stood at around $6.5 million. As Deadline notes, Fidelity's latest valuation of the social media company shows not only a "major haircut" from what Musk paid for Twitter, but also from what he himself said in March the company was worth: $20 billion.

In April, Musk admitted to ex-Fox News pundit Tucker Carlson that he didn't think his purchase had been a "financially smart" one. Meanwhile, Axios notes that we're seeing a one-month lag in the markdown reporting, meaning "the interesting question is what Fidelity does for the month of May," as that's when Musk announced new Twitter CEO Linda Yaccarino. Those numbers won't emerge until the end of June. Musk, usually a prolific presence on Twitter, hasn't tweeted since Monday. (Read more Twitter stories.)

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