As of right now, Elon Musk’s $48 billion (including $33.5 billion in equity) is worth $8.8 billion, according to the Bloomberg Billionaires Index.
A couple of months ago, after the acquisition, Musk said that Twitter is already worth half of what he paid for it back then.
Apparently, that reality has changed a bit. Twitter is not worth even less. It was Fidelity that came up with the new valuation of the company, and though it’s unclear how they reached this number, it should be accurate.
Ever since Musk’s acquisition of the company, Twitter has been in a constant financial pit. First, the $13 billion in debt that Musk accrued certainly didn’t help.
And then there was Musk’s chaotic decision-making at the helm of the company which brought the social media giant to its knees.
Thanks to the bizarre content moderation and many of Musk’s shenanigans, Twitter’s ad revenue dropped by a whole 50% in March 2023.
Then, Twitter Blue was launched in an attempt to switch to an alternative revenue source. However, this doesn’t seem to be working that well either.
At the end of March, around 1% of Twitter’s entire userbase had subscribed to Twitter Blue, far from enough to recoup the giant losses incurred months prior.
Musk currently holds 79% stake in the company after spending around $25 billion last year to honor his promise. Well, that investment is now worth around 33.3% of its initial value.
Despite all this, Musk’s overall wealth increased by $48 in 2023 because of a surge in Tesla’s share price. So, far from struggling financially, Musk is actually doing better than ever.
It remains to be seen whether Twitter will revive or if it’s headed for a steady downfall until bankruptcy.