Featured Image Credit: AC NewsPhoto / Alamy Stock Photo. stLegat / Alamy Stock Photo
Topics: Social Media, Money, Elon Musk, Twitter, Technology
Charisa Bossinakis
Topics: Social Media, Money, Elon Musk, Twitter, Technology
Twitter is reportedly worth a third of what Elon Musk bought it for in October for $44 billion.
While the SpaceX founder took out a hefty $12.5 billion (£10b) to acquire the social media giant last year, it looks like it's not paying off.
According to Fidelity, Twitter is now worth around 33 per cent of what the billionaire originally paid for.
This means that Twitter's value is currently at $15 billion (£12b).
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Fidelity has consistently reduced the number of its Twitter stake since November.
By February, Fidelity downgraded its stake by more than 63 per cent before dwindling it to 33 per cent.
Despite Musk's claims that the company will break even, Twitter has faced significant financial woes after it lost its biggest advertisers shortly after the South African business magnate took the reins.
According to Search Engine Journal, Twitter's advertising revenue is down 40 per cent, and over 500 top advertisers have stopped spending since Musk stepped in as CEO.
Since October, the social media platform has also lost many of its users.
According to data from the firm Bot Sentinel, 877,000 accounts were deactivated, and a further 497,000 were suspended between October 27 to November 1, within a week of Musk taking over.
Insider Intelligence also predicted that Twitter would lose almost 4 per cent of its users in 2023 and 5 per cent in 2024, totaling 32 million users.
Subsequently, Musk announced that he would be stepping down as CEO.
The Telsa CEO revealed that Linda Yaccarino, former chair of advertising sales for NBCUniversal, would be leading the company.
"I am excited to welcome Linda Yaccarino as the new CEO of Twitter!" he tweeted.
"@LindaYacc will focus primarily on business operations, while I focus on product design & new technology.
"Looking forward to working with Linda to transform this platform into X, the everything app."
Prior to purchasing the platform, Musk revealed had planned to turn Twitter into 'X, the everything app'.
Yaccarino proceeded to thank Musk for the introduction.
She added: "I’ve long been inspired by your vision to create a brighter future. I’m excited to help bring this vision to Twitter and transform this business together!"
Yaccarino added: "I see I have some new followers... I’m not as prolific as @elonmusk (yet!), but I’m just as committed to the future of this platform.
"Your feedback is VITAL to that future. I’m here for all of it.
"Let’s keep the conversation going and build Twitter 2.0 together!"
There might be some hope for Twitter after all.