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A recent disclosure from investment firm Fidelity points to it further marking down its stake in Twitter since the Elon Musk takeover of the company took place for $44 billion.
The report by Bloomberg said Fidelity first reduced the value of its Twitter stake in November – down to 44% of its purchase price. This was followed by further markdowns in December and February.
In its report, Reuters said, “Fidelity Blue Chip Growth Fund’s stake in Twitter, which now exists under Musk’s X Holdings Corp, was valued at nearly $6.55 million as of April 28, compared with $7.8 million as of January 31 and almost $8.63 million at November-end.”
Bloomberg added it was unclear how Fidelity arrived at its new, lower valuation or whether it receives any non-public information from the company.
The implications of this point to Twitter being valued now at about $15 billion, a significant downgrade from the price Musk paid for the social media platform back in the day.
Musk’s erratic handling of Twitter – from enabling the alt-right and conspiracy theorists to get a foothold again on the platform to its haphazard pricing for its premium “Twitter Blue” offering – and lack of proper enforcement of the platform’s rules as CEO of the company have not helped matters.
It is hoped, however, that the hiring of Linda Yaccarino as the company’s CEO may move things in a more positive direction. – Rappler.com