Twitter, one of the biggest acquisitions of this year, is experiencing a financial crisis under the control of Elon Musk. Shares of the social media platform, which was sold for $44 billion in April, fell. Accordingly, it fell to about a third of the price that Elon Musk received.
Giant investment company: Twitter share value fell to a third
According to investment firm Fidelity, Twitter has suffered a significant loss in value since the acquisition of Elon Musk. The company said the value of Twitter has dwindled to just one-third of what Musk paid. The next move of Musk, who sacrificed $ 44 billion for Twitter, is uncertain.
It remains unclear how Fidelity came up with this analysis and what sources it used. Elon Musk, who previously admitted to paying “too much” for Twitter, offered employees $20 billion in stock grants earlier this year.
We know that Twitter has been going through a financial crisis since it was acquired by Musk. The $13 billion debt, along with Musk’s controversial decisions, led to a 50 percent drop in ad revenue. This lost income is desired to be regained through Blue subscriptions.
However, research shows that at the end of March, only 1 percent of Twitter users subscribed to Blue. Promising striking features such as blue ticks, longer videos and fewer ads, Blue failed to attract the expected attention from users.
Elon Musk, on the other hand, spent over $25 billion to buy a 79 percent stake in the company. But the current value of Twitter investment hovers around $8.8 billion, according to the Bloomberg Billionaires Index.
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