Twitter’s Market Cap Drop: Musk Loses

Twitter's Market Cap Drop: Musk Loses
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Twitter’s market cap has dropped to just one-third of what Elon Musk and his group of investors paid last year, according to an estimate from a financial services company called Fidelity.

Elon Musk and co-investors bought Twitter for $44 billion last year.

Although Musk admitted that the price was excessive, he still bought about 79 percent of the company, using $25 billion of his own capital.

Fidelity, on the other hand, announced that Musk has been debt-financed to turn Twitter into a private company, starting in October.
“Twitter is estimated to be worth $15 billion”

According to a financial statement submitted by the Fidelity Blue Chip Growth Fund in April, the company has reduced its stake in Twitter and estimated the social media platform is currently worth about $15 billion.

Twitter Musk

Musk has also made significant cuts to the company’s workforce since taking over Twitter, and announced that shortly after the deal is complete, about half of the company’s 7,500-strong workforce will be affected.

According to The Wall Street Journal, in March, Musk offered Twitter employees stock options worth $20 billion at less than half the purchase price of the company.

At the time, Musk said in an email to employees, “I think I see a rough road to a valuation of over $250 billion.”

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Twitter’s Market Cap Drop: Musk Loses

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