X’s Value Decline by Billions of Dollar After Musk’s Acquistion

Since Elon Musk’s acquisition, the social media giant X has been facing a continuous decline for various reasons. Now, according to Fidelity, X has lost more than 71% of its value since Musk’s takeover in October 2022. The tech billionaire had paid $44 billion to acquire X, and now its value has dropped to around $12 billion, which is shocking.

A representative for Fidelity told a news source that the company doesn’t “comment on individual companies or our funds’ investment decisions” as a general practice.

According to a source, this isn’t the first time Fidelity has revalued X. It also owns an equity stake in the social platform but has been routinely decreasing the stake’s value since Musk’s acquisition.

In July, Musk said in an X post that the company was in a tough financial spot because of a dip in advertising. “We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load,” Musk wrote.

In November, big companies like Disney and IBM removed their ads from X after Musk apparently supported an antisemitic post. Musk later apologized for the antisemitic post but criticized the advertisers for boycotting his company.

“If somebody is going to try to blackmail me with advertising,? Blackmail me with money? Go fuck yourself. Go. Fuck. Yourself,” Musk said in an interview at The New York Times Dealbook Summit in November. Musk, however, later admitted that the advertiser boycott could “kill the company.”

“What this advertising boycott is going to do is kill the company. And the whole world will know that those advertisers killed the company,” Musk said at the same event.

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