In recent news, it has been reported that Twitter’s value has experienced a significant decline under the leadership of Elon Musk, the CEO of Tesla. The company’s worth has dropped to only one-third of the price that Musk paid for it, according to Fidelity, a financial services company that evaluates equity stakes. Elon Musk himself has admitted that he overpaid for Twitter, as he purchased the social media platform for $44 billion, including $33.5 billion in equity.

Recently, he stated that Twitter is worth less than half of what he initially paid. However, the exact methodology behind Fidelity’s new valuation remains unclear, and it is unknown whether the company receives any non-public information from Twitter. Fidelity has been continuously reducing the value of its Twitter stake since November, marking it down to 44% of the purchase price. This markdown has been further adjusted in December and February.

Since Musk took over Twitter, the company has faced financial challenges. Musk’s decision-making approach, coupled with difficulties in content moderation, has led to a 50% decline in advertising revenue, as stated by Musk himself in March.

Twitter’s attempt to compensate for this revenue loss through the sale of Twitter Blue subscriptions has been unsuccessful thus far, with less than 1% of monthly users signing up by the end of March. When considering Musk’s investment in Twitter, it is currently valued at $8.8 billion, according to the Bloomberg Billionaires Index, which relies on Fidelity’s valuation. \

Last year, Musk spent over $25 billion to acquire an estimated 79% stake in the company. With this recent markdown, Musk has experienced an $850 million reduction in his $187 billion fortune, as calculated by the index. However, despite the challenges faced by Twitter, Musk’s overall wealth has increased by more than $48 billion this year, mainly due to a 63% surge in Tesla Inc.’s share price. It is important to note that Twitter did not respond to a request for comment regarding these developments.

Elon Musk’s leadership at Twitter has resulted in a significant decline in the company’s value. While he acknowledges overpaying for the platform, Twitter has faced financial struggles under his direction. It remains to be seen how Musk will address these challenges and whether he can turn the tide for Twitter’s financial performance.

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