- Fidelity Investments
- According to it, the actual price of Twitter is about $14 billion
- Musk himself had previously announced the same
- The company’s price drop was caused by failed management and blatantly ineffective innovation on the platform
The market price of Twitter is now only about 33% of the amount that Elon Musk had previously paid for the company.. Fidelity Investments quotes this estimate.</nbsp;
Reminder, Elon Musk completed the deal to buy Twitter for $44 billion at the end of October last year.. Just a few days later, he was the sole boss of the company.</nbsp;
He soon introduced a new concept for Twitter in the form of an “app for everything.”. By mid-November, a large number of employees had left the company, either on their own or under pressure from the new management.
Most of Musk’s plans for the social network can be called controversial at the very least.. The company lost its advertising business, traffic declined, and the billionaire himself fiercely demonstrated that he was not willing to compromise.. This week, Fidelity Investments presented the results of Twitter’s assessment. The company believes the market value of the holding company is about $14 billion.
It is not clear how the agency came up with that figure.. Fidelity had previously downgraded Twitter’s stock first in November, then in December, and after that in February.
Interestingly, Musk himself said in March of this year, the actual value of the company is “less than half” of the paid. The reasons are: a more than 50% drop in advertising revenue, failed management, staffing problems and a number of ineffective innovations on the platform.
The reasons for this are: a drop in advertising revenue of more than 50%, failed management, staffing problems and a number of ineffective innovations on the platform.