X's Value Plummets as Fidelity Reports Significant Decline Post-Elon Musk Acquisition
X's Financial Woes: A Deep Dive
X's value is tumbling dramatically, now worth a staggering 79% less than its acquisition price by Elon Musk in 2022. As reported by Fidelity, who assisted Musk in his purchase, the company currently holds a stake that has drastically decreased in value.
Fidelity's Analysis and Investment
The investment firm initially backed Musk with $19.66 million. As of the latest reports, Fidelity's stake in X is valued at only $4,185,614, signifying a breathtaking decline. Back in January 2024, the valuation was already down by 71.5%, foreshadowing the troubling trajectory of the platform.
Revenue Issues and User Decline
As advertisers withdraw from X, anticipated spending cuts for 2025 could exacerbate the platform's challenges. In addition to financial setbacks, Brazil's regulatory efforts against X raise further concerns. The platform's user base is dwindling in both the U.S. and the U.K., marking an alarming trend.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.