Elon Musk’s X down $46.5 billion since rebranding from Twitter
Investment firm Fidelity has once again marked down its stake in the social media company formerly known as Twitter, with its latest report suggesting X has dropped by 71.5% in market value since Musk bought and renamed it in October 2022.
Fidelity helped fund Musk’s A$65 billion takeover of Twitter just over a year ago, after which it began marking down the value of its X Holdings shares.
The latest cut, made in its November portfolio update for the Blue Chip Growth Fund, saw a further 19% markdown, bringing the value of Fidelity’s stake — and by extension, that of the entire company — down by 71.5% since October 2022.
This means the company Musk paid A$65 billion for has shed a cool $46.5 billion.
That’s quite a dive in little over a year.
A November report by Media Matters showed that IBM’s ads on the platform were being displayed alongside content “promoting Adolf Hitler and the Nazi Party”.
IBM immediately pulled its ads, and big advertisers like Apple, Disney, and Lionsgate followed suit. More advertisers followed them out the door later that same day, when Musk retweeted an antisemitic conspiracy theory with the message: “You have said the actual truth.”
A few weeks later, he told companies who pulled their advertising to “go fuck yourself” onstage during The New York Times DealBook Summit, saying they will be responsible for sinking the social media platform.
“What this advertising boycott is going to do is, it is going to kill the company,” Musk said.
“And the whole world will know that those advertisers killed the company.”
Bloomberg News estimates that X will bring in advertising revenue of A$3.7 billion (US$2.5) for 2023 – well short of the $1.5 billion a quarter it pulled in before Musk’s takeover.
The company also has A$19 billion in debt.
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Musk has learned the hard way..he is focused – not social. You can’t be focused and social at this same time.
Social media is not his game – so its best he get out of it and stick to manufacturing cars, trucks and satellite systems.
He’s an engineer. Engineers are not social because they are not wired to be.
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The first thing you have to be to be social is …nice. If you’re not nice – you can’t be social because it’s what the job is all about 🙂
Be good, be nice or be off – I think that’s what Bill Bernbach once said.
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