The value of X, the social media platform formerly known as Twitter, has dropped by 71% since its acquisition by Elon Musk, as reported by mutual fund Fidelity.
Fidelity, holding a stake in X Holdings, disclosed a significant markdown in the value of its shares since the takeover. Musk's purchase of Twitter for US$44 billion in October 2022 and subsequent renaming to X in July 2023 has led to a current valuation of some US$12.5 billion.
In the first year under Musk's leadership, the platform experienced a 15% drop in monthly users amid rising concerns over increased hate speech. Post-acquisition, X has seen substantial staffing cuts and reduced moderation.
The European Union issued a warning to Musk in September after identifying X as having the highest ratio of disinformation posts among major social media platforms.
The revised valuation by Fidelity was revealed in a disclosure that ran to the end of November last year — a period that includes the aftermath of numerous companies withdrawing advertising from X following Musk's endorsement of an antisemitic conspiracy theory. X has not yet responded to requests for comments on this matter.
Musk — currently the richest person in the world with a net worth of US$251 billion — acquired Twitter intending to “help humanity” but has since reinstated controversial figures on the platform, including former president Donald Trump and right-wing conspiracy theorist Alex Jones.
Alex Jones has recently proposed a US$55 million settlement over 10 years to the Sandy Hook families, following a Texas judge's ruling that he could not evade payment of nearly US$1.5 billion in damages through bankruptcy protection. This case revolves around Jones's false claims about the Sandy Hook school shooting, which led to harassment of the victims' families.
Trump is currently contending with more than 90 criminal charges related to various allegations, including subversion of the 2020 election.