Fidelity, one of the outside investors that helped Elon Musk buy Twitter for $44 billion, has cut the value of its stake in Twitter by 56%. The recalculation comes as Twitter grapples with a series of challenges, much of it the result of messy management decisions — including the loss of advertisers from the network.
The Fidelity Blue Chip Growth Fund’s stake in Twitter was worth approximately $8.63 million as of November, according to monthly disclosures and Fidelity Contrafund notices Report Today by Axios. That’s down from $19.66 million at the end of October.
Macroeconomic trends may be partly to blame.stripe take Internal valuation cut 28% in July, and this week Instacart It is said Its valuation has fallen by 75%.
But Twitter’s weak post-Musk policies apparently didn’t help.
The network has been shaky on a technical level lately, taking a big hit on Wednesday power failure After Musk made “significant” changes to the backend server architecture. Twitter recently fired employees from its public policy and engineering departments, to dissolve The group weighs content moderation with human rights-related issues, such as suicide prevention.The company angered regulators after banning and quickly reinstating accounts belong to well-known journalists.
Again — as Axios business editor Dan Primack aptly pointed out in a tweet — Fidelity appears to be relying heavily on public market performance when it comes to valuations. The company likely doesn’t have any inside information about Twitter’s financial performance.
Twitter layoffs abound as company grows method $13 billion in debt requires $1 billion in interest payments while revenues are falling.A November report from American Media Matters estimated Half of Twitter’s top 100 advertisers, who spent nearly $750 million on Twitter ads this year, appear to no longer be advertising on the site. Twitter is pushing hard with its Twitter Blue initiative, aiming to make it an even bigger profit driver.but third party track data The hint was slow to take off.
The New York Times recently reported that some Twitter employees started bringing their own toilet paper to work after the company cut cleaning services Reportand Twitter has stopped paying rent on several of its offices, including its San Francisco headquarters.
According to the above-mentioned Times report, Musk has shut down a data center in the past few weeks and launched a fire sale after auctioning off office supplies to recover costs, trying to save about $500 million in costs not related to labor.
In addition, Musk’s team has arrive Opening up potential new investment to investors for the same price as the original $44 billion acquisition Twitter, according to to the Wall Street Journal.
A poll launched by Musk asking whether he should resign as head of the company closed on December 19, with users voting loudly approve of his departure. A few days later, Musk responded that he would “resign as CEO as soon as possible.” [he found] Someone stupid enough to take the job” and then “just manage the software and server teams. “
