1704353786
One of the investors in the social network X, formerly known as Twitter, has reduced the value of his investment by 71.5 percent. Elon Musk’s stock price is scaring away many advertisers, putting pressure on revenue.
Tuesday, January 2, 2024, 9:40 p.m
The write-down that fund manager Fidelity made on its investment in X gives an idea of how great the loss in value has been since Tesla boss Elon Musk bought the social network. Musk changed Twitter’s name to X and once again allowed blunt comments and bold statements on the platform. This deterred many advertisers and reduced revenue.
In October 2022, Musk, the world’s richest man, bought Twitter for $44 billion. In July 2023, he renamed the platform to X. Fidelity, which co-invested in X Holdings, has now largely written off its investment. Based on Fidelity’s write-down, the social network’s value has now fallen to 12.5 billion.
Donald Trump
Musk also fired half of X’s staff, including people who monitored the quality of information disseminated. Europe, among others, takes offense at the fact that there has been widespread disinformation since then. The shift to the right on the former Twitter led to the emergence of new social media such as threads from Facebook parent Meta.
With the Digital Services Act launched by the European Commission, Europe is signaling that it is no longer willing to allow everything on the Internet and wants to get its affairs in order. The major American platforms will have to comply with this, willy-nilly.
When Musk bought Twitter, he said he was doing it for the good of humanity. One of his most noticeable moves was to allow the increasingly extreme former President Donald Trump to use the platform again. Trump wants to run for president again but must defend himself in court against a barrage of charges that could land him behind bars.
#Twitter #fallen #percent #Musk