The imminent launch of the first Bitcoin exchange-traded funds (ETFs) is sparking a fee competition among major investment firms, including Fidelity Investments and Invesco. As these financial products are set to debut as early as next week, the firms are already positioning themselves in the market by adjusting their fee structures to attract investors.
Fidelity Investments, a major backer in Elon Musk's acquisition of Twitter, has seen the value of its stake in the company plummet by 72% since the purchase in October 2022. This significant drop suggests that Twitter's overall value has similarly decreased, potentially to less than the debt incurred for its acquisition. Banks holding the debt face the dilemma of selling at a loss or risking further devaluation. Despite the financial turmoil surrounding Twitter, Musk's wealth, bolstered by his shares in Tesla, remains robust.
Fidelity Investments, a shareholder in Elon Musk's X Holdings (formerly Twitter), reported a 71.5% decrease in the company's value since Musk's acquisition in October 2022, now valuing it at approximately $12.5 billion. This follows a series of controversies under Musk's leadership, including increased hate speech on the platform and the loss of major advertisers. Additionally, X recently failed to block a California law requiring social media companies to disclose content-moderation policies, adding to the platform's challenges.
Fidelity's securities filing reveals that the social media platform X, previously known as Twitter, has significantly dropped in value, now estimated to be 71.5% less than when Elon Musk bought it in October 2022. The platform has faced numerous controversies, including an advertising boycott from major companies like Disney, Apple, and Coca Cola, following Musk's endorsement of an antisemitic post. Despite an apology from Musk and the potential financial risks, he remains defiant against what he perceives as advertising blackmail.
Fidelity Investments has significantly reduced the valuation of its stake in Twitter, suggesting that the social media company has lost approximately 72% of its value since Elon Musk's acquisition in October 2022. The valuation drop reflects Twitter's ongoing struggles with advertiser retention and controversial content moderation policies under Musk's leadership. Additionally, Twitter recently failed to block a California content-moderation law, which requires transparency in social media companies' content moderation practices.
Fidelity Investments, a mutual fund that contributed over $300 million to Elon Musk's acquisition of a social media platform (referred to as "X" in the article), has significantly reduced the valuation of its investment, now estimating the platform to be worth 71.5% less than the purchase price of $44 billion. The devaluation follows a series of controversial actions by Musk, including offensive remarks and a loss of major advertisers. Despite introducing a new AI chatbot feature named Grok to boost subscriptions, Fidelity remains unconvinced of its impact on the platform's value. Meanwhile, competitors like Meta and Snap have seen their stocks rise as they become more attractive to advertisers.
The social media platform formerly known as Twitter, now called X, has seen a significant drop in value, with a 71% decrease since Elon Musk's acquisition in October 2022, as reported by Fidelity. The platform, purchased for $44 billion, is now valued at approximately $12.5 billion. This decline follows a series of controversial decisions by Musk, including staff cuts, reduced moderation, and the reinstatement of banned individuals. The platform has also faced a decrease in monthly users and criticism for increased hate speech and disinformation, leading to advertising boycotts and warnings from the European Union.
Fidelity has significantly reduced the valuation of its investment in X holdings, the parent company of X (formerly Twitter) owned by Elon Musk, by 71.5%. Despite acquiring a stake for $19.2 million in October 2022, Fidelity has continued to mark down the valuation, with the latest cut following a 65% reduction in October 2023. X, under new CEO Linda Yaccarino, aims to be profitable by 2024 but faces challenges in retaining advertisers after controversial statements by Musk and his decision to reinstate banned accounts. The company is shifting focus to small and medium businesses for advertising revenue to counteract the loss from major advertisers' boycotts.
Fidelity Investments reports that the value of the company formerly known as Twitter, now referred to as X, has plummeted by 71.5% since Elon Musk's acquisition in October 2022. Despite Musk's initial $44 billion investment, Fidelity's revaluation reflects a significant loss, exacerbated by a substantial drop in advertising revenue and a debt burden. The decline in value follows a tumultuous year, including an advertising boycott from major companies like Disney and IBM after Musk's controversial endorsement of an antisemitic post. Musk's confrontational stance towards advertisers and acknowledgment of the existential threat posed by the boycott underscore the platform's financial and reputational challenges.
Fidelity Investments has reported that the platform formerly known as Twitter, now referred to as X, has decreased in value by 71% since Elon Musk's acquisition in late 2022 for $44 billion. Despite the significant drop in valuation, Musk has been dismissive of advertisers threatening to leave the platform and has made drastic staffing cuts. His controversial leadership style and comments, including a response to an advertising boycott and an apology for endorsing an antisemitic conspiracy theory, have marked his tenure at the helm of X.
Fidelity Investments has estimated that the social media platform, now known as X after being acquired and renamed by Elon Musk, has decreased in value by 71% since Musk's purchase in late 2022. Despite the significant drop in valuation, Musk has been dismissive of advertisers withdrawing from the platform and has maintained a defiant stance, even amidst controversies such as his response to an antisemitic conspiracy theory and his recent visit to Israel. Musk's aggressive management style, including mass layoffs and confrontational remarks to advertisers, has marked his tenure at the helm of X.
