Posted: September 29, 2024
X’s Value Drops to Less Than a Quarter of Musk’s Purchase Price
According to a new estimate from investor Fidelity, Elon Musk’s X (formerly Twitter) is now worth less than a quarter of its $44 billion purchase price. The asset manager’s Blue Chip Growth Fund has reduced the value of its holding in X by 78.7% as of August end.
Fidelity’s Estimate
The firm’s unit has valued its stake in X at approximately $4.19 million, based on newly released disclosures from Fidelity’s Blue Chip Growth Fund. This is a significant markdown from the initial investment made through the fund, which was $19.66 million.
Context and Previous Valuations
For context, Fidelity had initially invested $19.66 million in X through the Blue Chip Fund, as per regulatory filings. This isn’t the first time Fidelity has cut the value of its holding in X. As of July’s end, Fidelity had valued its shares in X at about $5.5 million.
Implications and Comparison
The 78.7% markdown implies that Fidelity is currently valuing X at about $9.4 billion overall. This estimate assumes that Fidelity’s investment in X was made at a $44 billion valuation, which was the purchase price of Twitter by Elon Musk.
Background and Funding
Fidelity declined to comment on the matter. X didn’t respond to a request for comment. The acquisition of Twitter by Elon Musk was financed through a combination of equity and debt.
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