Value of Musk’s social media platform X down to 79 percent
New Delhi| Global investment firm Fidelity has cut the valuation of Elon Musk’s social media platform X (former Twitter) by 78.7 percent to $9.4 billion. The X platform was purchased in October 2022 for $44 billion from the billionaire tech businessman. X is now worth less than a quarter of its $44 billion purchase price at the end of August, TechCrunch reported, quoting filings made by the company.
The value of its stake in X on behalf of the Fund is estimated at about $4.18 million. It was valued at $5.5 million in July. No statement has been given by X, Fidelity and Musk on this report prepared on the basis of facts declared in the regulatory regulators. In May, $6 billion was raised from XAI, an artificial intelligence (AI) company run by Musk, to increase research and development in future technology.
In the information given by Musk, it was reported that its pre-money valuation is $18 billion. In October 2022, Fidelity had invested $300 million in X. In 2023, Fidelity had reduced the valuation of X by 65 percent. In January this year, the valuation of the company was reduced by 71.5 percent from the peak.
While taking a $13 billion loan during the acquisition of Twitter, Musk told banks that he would not suffer any loss in this deal. The loan is divided into three parts, which included a $6.5 billion term loan and $6 billion in senior and junior bonds and a $500 million revolver loan.
