Elon Musk’s acquisition of X turned into a total flop.
Fidelity Investments published data according to which the value of social network platform X, formerly Twitter, has fallen by 71 percent since its purchase by billionaire and richest man in the world, Elon Musk.
Musk purchased Twitter, now X, for $44 billion in October 2022. Fidelity was part of the investment group that helped Musk take over Twitter, in a deal that included equity of $33.5 billion.
Last July, Musk changed the name of Twitter to X, a move that was not welcomed by company investors.
Many organizations and companies also announced that they had stopped advertising on X, and Musk addressed this matter, criticizing them harshly. "This boycott of advertising is going to kill the company. The whole world is going to know that these advertisers killed the company," said Musk.
Since the outbreak of the war in Gaza, claims have been made that the social network allows the publication of antisemitic posts, and the European Union has warned Musk that X allows the publication of vast amounts of fake news.
Immediately after the acquisition, Musk fired half of X’s employees, and during his first year as owner, the number of monthly users of the social network decreased by 15%, due to the fear by many of expressions of hatred on X.
Musk did not respond to the announcement of the huge decline in X’s value, and it is still unclear whether he intends to take steps to stop the decline in the company's value.