Twitter, the renowned social-media platform, once considered the heartbeat of the digital world, has experienced a steep downfall in value. Purchased by Elon Musk, the techno-entrepreneur and CEO of SpaceX and Tesla, the platform's value has plummeted to one-third of the acquisition price, as revealed by Fidelity's recent markdown of its equity stake in Twitter.
Elon Musk, who once saw Twitter as an opportunity to push the boundaries of social media, has confessed that the acquisition was not as fruitful as he had envisaged. Purchased for an astronomical $44 billion, including $33.5 billion in equity, Twitter's value has halved, according to Musk. The exact methodology by which Fidelity determined the markdown remains undisclosed, leaving unanswered questions about whether they had access to any non-public information from Twitter.
The first signs of decline emerged in November when Fidelity reduced the value of its Twitter stake to 44% of the original purchase price. This initiated a series of further markdowns in December and February, marking a troubled fiscal trajectory for the platform.