One-third of what Elon Musk paid for Twitter just seven months ago may represent its current value.
For the third time, financial services provider Fidelity has decreased the market value of its own investment in Twitter, bringing it down to $6.55 billion. Comparatively, Fidelity valued its investment at about $20 billion in October.
It’s unclear how Fidelity arrived at its valuation estimates, but as a publicly traded corporation, it must report to investors on its holdings. Information about Twitter’s finances cannot be independently confirmed because it is a private corporation presently known as X Holdings Corp.
Following months of uncertainty and a protracted court struggle, Musk took over Twitter in October. Twitter was purchased by the CEO of Tesla, who also owns SpaceX, for $44 billion.
The billionaire used money, including loans from a number of banks, to pay for the purchase. Musk claimed that while the $44 billion price tag for Twitter was excessive, the company still had a lot of promise.
After buying Twitter late last year, Musk told the BBC in April that running the social media company had been “quite painful,” but that it was now nearly breaking even. According to Musk’s then-predicted scenario, Twitter may become “cash flow positive” in the upcoming quarter “if current trends continue.”
