The value of social network X has fallen by about 80 per cent since Ilon Musk bought it

Company X, formerly known as Twitter, acquired by Ilon Musk for $44 billion in 2022, is now worth less than a quarter of that amount.

Here's What We Know

According to the latest financial data from investment firm Fidelity, the company's value has fallen more than 78% since Musk bought it for $44 billion in 2022. X is currently valued at less than $10 billion. Fidelity, which invested $19.66 billion in the company after Musk bought Twitter, now values its stake at $4.19 billion.

Reasons for the drop in value include the mass exodus of advertisers and users, as well as controversial changes made by Musk. He has allowed bots and ambiguous content to flourish, alienating many users. Musk also clashed with advertisers, which exacerbated the situation. As a result, X has lost a significant number of users, especially in Brazil, where the platform was recently temporarily blocked.

Musk, who calls himself a free speech absolutist, continues to face criticism for censorship and right-wing political statements. The company is currently valued at $9.4bn, well below the original purchase price and this could soon lead to the platform being shut down.

Source: TechCrunch