Twitters value fell to 33 of the 44 billion Elon

Twitter’s value fell to 33% of the $44 billion Elon Musk paid for the social network

It’s widely believed that from April to October last year, Elon Musk tried to lower the amount he was supposed to pay for Twitter fortune to about $20 billion from the original $44 billion. Now, Fidelity analysts say that number is three times lower than Musk paid the company in October.

    Image Source: Getty Images, Scott Olson

Image Source: Getty Images, Scott Olson

Investors don’t explain what the current capitalization estimate is based on, but Fidelity officials said back in November last year that they value their own stake in Twitter’s capital at 44% of the level of Elon Musk’s October deal. Further declines in Fidelity’s assets followed in December and February, with investors now claiming their stake in the company is worth about a third of what it paid last October.

Elon Musk has repeatedly indicated that he is making every effort to prevent Twitter from going bankrupt. Many of the social network’s counterparties have suffered from cost-cutting measures, from landlords to law firms. In March, the Twitter boss admitted that ad revenue had fallen by 50%. Efforts to offset those losses with funds from Twitter Blue’s subscription sales have so far failed to produce the desired return, as no more than 1% of the social network’s monthly users switched to a paid subscription by the end of the first quarter.

Accordingly Bloomberg, now the value of Elon Musk’s Twitter assets does not exceed $8.8 billion. From his own funds, he spent more than $25 billion last fall to buy about 79% of the company’s stock. This revaluation of Twitter’s assets takes away from Musk’s $187 billion fortune, but Tesla’s positive stock price more than offsets Twitter’s pullbacks, adding $48 billion to its net worth year-to-date.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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