The cost of turning a social media platform into a right wing cesspool of racist extremism is high
https://www.cnn.com/2023/05/31/tech/twitter-value-fidelity-estimate/index.html
Twitter may be worth only a third of its pre-Musk value, Fidelity says
By Brian Fung, CNN
Published 11:57 AM EDT, Wed May 31, 2023
WashingtonCNN — A Fidelity fund has slashed its estimate of Twitter’s value amid ongoing chaos at the company, implying the social media platform may be worth only a third of its value compared to when Elon Musk acquired it in October.
According to a monthly disclosure, Fidelity’s Blue Chip Growth Fund reported that its stake in Twitter was worth $6.55 million at the end of April.
That’s down from the $19.66 million the Fidelity fund said its stake was worth in October as Musk was finalizing the acquisition. The revision implies Twitter may be worth only $15 billion overall, as opposed to Musk’s $44 billion purchase price.
Fidelity did not provide a reason for the markdown in its disclosure nor an explanation of how it arrived at its valuation, but the adjustment coincides with widespread public blowback to Musk’s erratic decision-making.
Under Musk’s watch, Twitter has laid off much of its staff, lost many of its advertisers and embarked on a troubled rollout of a paid subscription service and the end of traditional user verification that has led in some cases to impersonations of brands and high-profile accounts.
Fidelity has repeatedly marked down Twitter’s value. Its stake was worth $8.63 million in November and then $7.8 million in January, Reuters has previously reported. This week’s figures were first reported by Bloomberg.
https://www.cnn.com/2023/05/31/tech/twitter-value-fidelity-estimate/index.html
Twitter may be worth only a third of its pre-Musk value, Fidelity says
By Brian Fung, CNN
Published 11:57 AM EDT, Wed May 31, 2023
WashingtonCNN — A Fidelity fund has slashed its estimate of Twitter’s value amid ongoing chaos at the company, implying the social media platform may be worth only a third of its value compared to when Elon Musk acquired it in October.
According to a monthly disclosure, Fidelity’s Blue Chip Growth Fund reported that its stake in Twitter was worth $6.55 million at the end of April.
That’s down from the $19.66 million the Fidelity fund said its stake was worth in October as Musk was finalizing the acquisition. The revision implies Twitter may be worth only $15 billion overall, as opposed to Musk’s $44 billion purchase price.
Fidelity did not provide a reason for the markdown in its disclosure nor an explanation of how it arrived at its valuation, but the adjustment coincides with widespread public blowback to Musk’s erratic decision-making.
Under Musk’s watch, Twitter has laid off much of its staff, lost many of its advertisers and embarked on a troubled rollout of a paid subscription service and the end of traditional user verification that has led in some cases to impersonations of brands and high-profile accounts.
Fidelity has repeatedly marked down Twitter’s value. Its stake was worth $8.63 million in November and then $7.8 million in January, Reuters has previously reported. This week’s figures were first reported by Bloomberg.
