Elon Musk has wiped out 72% of Twitter’s value since taking over, Fidelity reveals in new filing
Fidelity has cut the valuation of its stake in Elon Musk’s X again, reflecting a 72% markdown since the billionaire bought the former Twitter Inc. a little more than a year ago.
The investment firm, which helped Musk complete the $44 billion purchase, cut the value of its holding in X by 19% in its November portfolio update for the Blue Chip Growth Fund, compared with a September filing, according to calculations by Bloomberg. It’s the latest in a series of markdowns by Fidelity since Musk concluded the acquisition of the social media platform in October 2022, as closely held X has struggled to hold on to advertisers and is weighed down by $13 billion in debt.
Fidelity didn’t disclose the size of its current stake in X, which it said was valued at $5.6 billion. It’s unclear how Fidelity arrived at its new, lower valuation or whether it receives any non-public information from the company.
As of Oct. 30 the fund hadn’t sold any of its stake, but the monthly report with the updated valuation doesn’t disclose whether the size of the holding changed. Assuming the fund hasn’t reduced its holding in X, the latest report implies the value of the entire company has also fallen by 72%. Fidelity declined to comment.
