Cycling

Fidelity cuts the value of its Twitter stake by 56% as Musk faces challenges

San Francisco, December 31 (IANS): Leading global investment firm Fidelity has slashed the value of its Twitter stake by 56 percent in Elon Musks’ first month of ownership, as the microblogging platform navigates a myriad of problems.

Fidelity’s Contrafund valued its Twitter shares at $53.47 million on Oct. 31, just days after Musk’s $44 billion acquisition deal closed, Axios reports.

It then revalued the shares by about $23.46 million as of November 30, representing a 56 percent decline.

Fidelity was among the investors that helped Musk finance his $44 billion acquisition of the microblogging platform by buying shares.

According to the report, the investment firm holds Twitter shares in several of its mutual funds, under the name “X Holdings I Inc.”

Twitter is currently happening. Massive curation amid layoffs and advertisers leaving the platform.

Media Matters for America estimated last month that half of Twitter’s top 100 advertisers, who have spent nearly $750 million on Twitter ads this year, appear to no longer advertise on the website.

Musk said Friday that the new Twitter under his helm will aim to optimize every minute a user spends on the microblogging platform, and he has no regrets.

Musk has saved the company from bankruptcy and is now striving to be profitable.

Musk also launched the Blue tick subscription, which costs $8 per month to buy on the web or $11 per month through the iOS app store.

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