Twitter Is Now Worth Just One-Third Of Elon Musk’s Purchase Price

According to the latest reports, Twitter is now just worth one-third of what Elon Musk paid for it. Let me tell you that Elon Musk bought Twitter with much fuss back in 2022. He paid USD 44 billion to complete the purchase of the social media giant. It would not be wrong to say that the company has been struggling financially ever since Musk took control. However, now it seems that Musk paid much more to acquire Twitter than it was worth. You can say he overpaid for Twitter. Twitter’s Worth was $44 billion, including $33.5 billion in equity. He even said recently that Twitter is worth less than half what he paid for it.

Is Twitter Really Worth $44 Billion?

According to the latest reports, Fidelity reduced the value of its Twitter stake back in November to 44% of the purchase price. It was further followed by markdowns in December and February. It would not be wrong to say that Twitter struggled financially since Musk took over. After burdening the company with $13 billion of debt, Musk’s inconsistent decision-making and challenges with content temperance led advertising revenue to decline by 50 percent.

After that, he even made an attempt to recoup that revenue. For that purpose, Musk sold Twitter Blue subscriptions but has so far failed to take off. At the end of March, less than 1 percent of Twitter’s monthly users signed up. According to the Bloomberg Billionaires Index, Musk’s investment in Twitter is now worth $8.8 billion.  Elon Musk spent more than $25 billion to gain an estimated 79 percent stake in the company last year.

Reports claim that the latest markdown obliterates about $850 million from Musk’s $187 billion fortune. However, Musk’s wealth is up more than $48 billion this year due to a 63 percent surge in Tesla Inc.’s share price despite of these Twitter issues.

Also Read: Here’s How To Apply Online For PM Youth Laptop Scheme 2023 – PhoneWorld

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Laiba Mohsin

Laiba is an Electrical Engineer seeking a placement to gain hands-on experience in relevant areas of telecommunications. She likes to write about tech and gadgets. She loves shopping, traveling and exploring things.

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