In a recent move, Fidelity has once again reduced its stake in Elon Musk's social media platform, previously known as Twitter but now rebranded as X. Fidelity had initially purchased the stake for $44 billion, but according to a November filing released on Dec. 30, the value of the stake has been marked down significantly.
Previously valued at nearly $20 million in October 2022, Fidelity now lists the value of its X Holdings stake at $5,599,168. This represents a depreciation of 71.5% since its purchase. Notably, Fidelity had previously reduced the valuation by 65% in October.
The decline in value can be attributed to the challenges faced by X Holdings. Major advertisers such as IBM Corp., Walt Disney Co., and Apple Inc. have pulled their support from the platform due to inflammatory comments made by Musk as well as concerns surrounding extremist content on X.
During the New York Times' DealBook summit last year, Musk openly criticized advertisers and even accused them of "blackmail." He expressed his belief that they were determined to "kill" X. In response to those boycotting his platform, Musk used strong language, repeatedly telling them to "go f—" themselves.
Despite these setbacks, it remains to be seen how X Holdings will navigate these challenges moving forward.
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