Fidelity's latest disclosure reveals that the value of X, formerly known as Twitter, now stands at $9.4 billion, significantly less than the $44 billion purchase price by Elon Musk.
With X earning approximately $2.5 billion in advertising revenue last year—half of its 2022 earnings—its reliance on ad sales, which account for 70-75% of total revenue, is concerning.
The shutdown of X's San Francisco headquarters and relocation to Texas highlight the company's ongoing financial struggles amid employee skepticism regarding Musk's promise of stock grants.
Fidelity's valuation of its stake in X has plummeted by 78.7%, from an initial $19.66 million investment to just $5.5 million, indicating the deepening financial woes of the company.
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