Loss-making deal, or erratic rundown? X loses two thirds of its purchase value

Ad revenue troubling X: Microblogging site X has lost 71 per cent, or two-thirds of its value since it was bought by Elon Musk, mutual fund Fidelity has said while cutting down the valuation of the social media platform.

Fidelity has cut the valuation of its stake in X, which was called Twitter before the rebrand in 2023, by 19 per cent in its November update, as per the report accessed by Axiom.

Notably, Fidelity began marking down its Twitter shares the first month after Musk's buyout in 2022, but by 2023 the fund increased the share value or kept it stable for a few months earlier in 2023.

Elon's Views Running X Down?

Source: Flickr

In an apparent dig on Disney CEO Robert ‘Bob’ Iger to "go f**k yourself" during an on-stage interview with the New York Times, and is known to be vocal on issues, and rubbing celebrities as well as businesses the wrong way.

His X post accused Jewish communities of spreading “hatred against whites that they claim to want people to stop using against them,” which resulted in 200 brands including Disney, Apple, and IBM halting advertising on X.

Musk had apologised for his remarks, but accused the advertisers pulling back from the platform as “blackmail.”

Fidelity had marked down the value of its shares by 71.5 percent since Musk’s purchase.

Musk's X

Source: Needpix

X has let go of at least 50 per cent of its staff and reduced moderation on the platform. It also received a warning from the European Union in September after X had the highest ratio of disinformation posts of all large social media platforms, as per EU findings.

Since his takeover, Musk has reinstated previously banned individuals from the platform, including former president Donald Trump and conspiracy theorist Alex Jones.