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Twitter stake marked down again, hinting to plummeting value

Published 31/05/2023, 12:42
© Reuters.  Twitter stake marked down again, hinting to plummeting value
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Proactive Investors - Twitter Inc’s value has been written down for the third time by investors since Elon Musk bought the social media in October.

Fidelity Blue Chip Growth Fund’s stake in Twitter had been valued at US$8.6mln in November, after an initial markdown, but fell to US$7.8mln in January and US$6.5mln last month, according to monthly disclosures from the investor.

The stake had been reduced to 44% of its former value of US$19.6mln in November after Musk took over, meaning Twitter is now worth two-thirds less than when Musk took charge.

According to Bloomberg’s billionaire index, Musk’s US$26bn-plus investment for 79% of the company last year is now worth just US$8.8bn.

Musk’s takeover deal had placed Twitter’s value at US$44bn in October and included US$2.5bn in closing costs, with around US$7.1bn of the funds coming from other investors and US$13bn through debt financing deals with banks.

Fidelity did not clarify how the markdown was calculated, though the move follows several reports that Twitter’s key advertising revenue has taken a significant hit since Musk’s buyout.

Read more on Proactive Investors UK

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