In a recent valuation by Fidelity, X, the social media platform formerly known as Twitter, has seen a staggering 71% decrease in its worth since Elon Musk’s acquisition in late 2022. This marks the second time that Fidelity has revised the platform’s value, signaling a potential challenge for the company.
The transaction saw Musk purchasing the platform for $44 billion, with Fidelity playing an important role in the investment. The deal, finalized in October 2022, involved $33.5 billion in equity and additional financing through debt, ultimately transforming X into a privately held company.
Musk’s initial criticism of Twitter, branding it a threat to democracy and civilization, was a precursor to the extensive changes he implemented upon taking charge. He attributed these concerns to what he termed as a left-wing “mind virus,” accusing the company’s leadership and employees of perpetuating biased content.
In the early months of Musk’s leadership at X, the company underwent significant restructuring with thousands of employees being let go. Musk, adopting a bold approach, remained dismissive of advertisers, openly expressing his indifference to their concerns and threats to withdraw from the platform.
One incident occurred in late November when Musk, in response to advertisers leaving X, openly told them to “go f**k yourself,” emphasizing that their actions could potentially lead to the fall of the company. He specifically stated, “And the whole world will know that those advertisers killed the company.”
Even when faced with potential advertiser pullouts, Musk remained unyielding. In response to Disney CEO Bob Iger, who hinted at pulling Disney’s advertising from X, Musk responded with unapologetic bluntness. “Don’t advertise. If someone is going to try and blackmail me with advertising? Blackmail me with money? “Go f**k yourself—That’s how I feel, don’t advertise.”
This incident adds to the growing challenges Musk is facing in navigating the unstable growth of X, which now raises questions about the platform’s future under his leadership.