The social media platform “X” has seen a 71% drop in its value since it was acquired by American billionaire Elon Musk, according to Fidelity Investments.
Musk acquired “Twitter” for $44 billion in October 2022, renaming the platform to “X” in July 2023. Fidelity’s estimates now value the platform at around $12.5 billion, as reported by Axios.
The monthly users of “X” dropped by 15% during the first year of Musk’s ownership, amid concerns of increasing hate speech on the platform. Around 50% of “X” employees lost their jobs in a downsizing campaign following Musk’s takeover.
In September last year, the European Union issued a warning to Musk after finding that the platform had the highest percentage of misleading posts among major social media platforms.
Prominent American companies, including Apple, Walt Disney, Warner Bros. Discovery, and NBCUniversal, temporarily halted their advertisements on “X” in November last year, accusing Musk of anti-Semitism due to a post where he accused Jews of inciting hatred against whites, claiming it was the “actual truth.”
The New York Times estimated at the time that advertiser migration could cost “X” up to $75 million in lost revenue for 2023. Elon Musk is currently the world’s richest person, with a net worth of $251 billion, according to Forbes magazine.
