(Photo Credit – Indicative picture)
7 months ago Elon Musk bought Twitter for $44 billion. Then he insisted that he had paid more money for the social media platform. The new year started and reports came that Twitter’s value has come down by 50 percent. Now the data which is coming out in May is also shocking. The value of Twitter has decreased by more than $ 29 billion. Which is a big blow. This means that in 7 months the value of the company has reduced to only 33 per cent.
Musk has admitted that he overpaid for Twitter, which he bought for $44 billion, including $33.5 billion in equity. A few months ago, Elon Musk himself said that what he paid for Twitter is less than half of its value. It is not clear on what basis Fidelity arrived at the valuation. Or they have received information from the company.
Musk made many changes, but to no avail
Fidelity first reduced the price of its Twitter shares to 44 per cent of the purchase value in November. After this, more markdown was done in December and February. Twitter has been struggling financially since Musk took over. In view of the debt of $ 13 billion, Musk took some such decisions along with Musk’s content moderation, due to which Twitter’s revenue decreased by 50 percent. On the other hand, attempts to recover that revenue by selling Twitter Blue subscriptions have so far failed. At the end of March, less than 1 percent of Twitter’s monthly users had signed up. By the way, Twitter has not given any official statement about this.
Musk’s net worth is $ 190 billion
According to the Bloomberg Billionaires Index, Musk’s investment in Twitter is now worth $8.8 billion. Musk spent more than $25 billion last year to acquire an estimated 79 percent stake in the company. According to the index, at present, Elon Musk’s net worth is $ 190 billion and today his net worth has increased by about $ 5 billion. This year his net worth has seen an increase of $53 billion. In fact, due to the increase in Tesla’s shares, there has been an increase in his net worth.