Elon Musk’s Twitter, now rebranded as X, has been valued at $19 billion, marking a significant decrease from its purchase price of $44 billion over a year ago. The company’s value has reportedly dropped by approximately 56%, with some estimates suggesting an even steeper decline. Fidelity Investments, which contributed to Musk’s takeover, estimates a 65% decrease, valuing X at around $15.4 billion.
This decline in value follows Musk’s controversial decision to lay off nearly half of the platform’s workforce after the acquisition, leading to widespread criticism and speculation about the future of the platform under his leadership.
Elon Musk’s vision for X, formerly known as Twitter, involves transforming it into an “everything app” that generates revenue from various features such as shopping, payments, audio and video calling, a hiring service, and a news wire. The goal is to compete with established players like Google’s YouTube, Microsoft Corp.’s LinkedIn, and Cision’s PR Newswire.
Despite Musk’s interest in taking X public, the company’s substantial decline in value, dropping from $44 billion to $19 billion, might present challenges to such a move. Going public with a significantly reduced valuation could impact investor confidence and market perception, making it a complex decision for Musk and his team.
