Elon Musk destroyed more than half of Twitter’s value in over 2 months, investor records show

news7f01/04/2023

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Elon Musk destroyed more than half of Twitter's value in over 2 months, investor records show

Elon Musk’s Ownership Story Twitter dominant title in 2022. First Musk bid $54.20 for the company, which appeared to be a joke, then shocked Wall Street by signing a binding merger agreement with that money, then caused another shock when he tried to pull out of the company. deal and Twitter sued forcing him to shut down (when its value seemed to be a lot lower than his bid). Ever since Musk made Twitter private and reportedly laid off half of its employees, the value of the social media giant remains unclear. At one point, Musk even warned it might go bankrupt.

We now have a clue, in the form of a regulatory filing for the Fidelity Blue Chip Growth Fund, which invests most of its assets in companies with market capitalizations greater than $10 billion. The fund from the wealth management giant valued its stake in Twitter at $19.66 million at the end of October, a quarterly holdings report said. By November 30, that holding had dropped to $8,626,218, another profile said. That means the value of Fidelity’s investment in Twitter has dropped 56% since October.

Musk originally announced his bid for Twitter in April 2022, according to the prescribed documents. Fidelity is one of 19 investors listed as involved in Musk’s $44 billion purchase of Twitter and has committed approximately $316 million to the transaction. a file dated May 4 said.

Since completing the merger, Musk has cut costs at Twitter, an organization that he likens to an airplane that “is going straight to the ground at high speed with its engine on fire and its control system on the ground.” inactive”. In one of his latest cost-cutting moves, he canceled janitorial services this month at the company’s San Francisco headquarters, based on the New York Times. Twitter has been sued separately by its landlord, Columbia Property Trust for not paying rent at the same premises, according to Bloomberg.

Last month, Musk also said he will resign as CEO after millions Twitter Users asked him to resign in an unscientific poll created by the billionaire himself and promised to comply. He was reported seeing for a new CEO.

Musk did not immediately respond to messages for comment.

This story was originally featured on Fortune.com