Fidelity slashes the value of its Twitter stake by over half

Fidelity slashes the value of its Twitter stake by over half

Fidelity, one of the outside investors who helped Elon Musk finance the $44 billion purchase of Twitter, has reduced its stake in Twitter’s value by 56%. This recalculation is necessary as Twitter faces a variety of challenges. Most of these are the result of chaotic management decisions, including the exodus of advertisers.

According to Fidelity Contrafund notice and a monthly disclosure, Fidelity’s Blue Chip Growth Fund stake was valued at $8.63 million as November ended. reported Today by Axios. This is down from $19.66million at the end of October.

Macroeconomic trends could be partly to blame. Stripe Taken Instacart saw a 28% decrease in internal valuations in July. reportedly Its valuation was reduced by 75%

However, Twitter’s flimsy policies after Musk clearly haven’t helped matters.

As a result, the network has become less stable on a technical level. Wednesday’s suffering was the latest example. Outages Musk made “significant” changes to the backend server architecture. Twitter recently laid off employees from its engineering and public policy department. Dissolving This group is responsible for weighing-in on content moderation, human rights-related issues, such as suicide prevention. After banning accounts and quickly reinstating them, the company has drawn the ire of regulators. belonging To prominent journalists

However, it is possible that Fidelity relies heavily on the public market performance when it comes to valuations. It is possible that the firm doesn’t have any information on Twitter’s financial performance.

Twitter is experiencing cuts as the company Approaches $1 billion in interest payments due to $13 billion of debt, all the while revenue dips. Media Matters for America’s November Report Estimate Half of the top 100 Twitter advertisers, who spent nearly $750 million on Twitter ads in 2013, appear to have stopped advertising on the site. Twitter is heavily pushing its Twitter Blue plan to increase profits. Third-party tracking data It’s slow to take off.

After Twitter cut back on janitorial services the New York Times reported that some employees of Twitter are now bringing their own toilet paper to work. reportedTwitter has stopped paying rent in several of its offices, including its San Francisco headquarters.

According to the Times report, Musk attempted to save $500 million in labor costs by shutting down a data centre and launching a fire sale. He also put office items up for bidding in an effort to recover costs.

Musk’s team also has Attained Investors can apply for new investment in Twitter at the same price that the original $44 billion acquisition. According The Wall Street Journal

Musk’s poll asking whether he should resign as CEO of the company was closed December 19, with users voting Resoundingly Musk voted in favour of his departure. Musk replied several days later, saying that he would resign as CEO “as quickly as possible”. [he found] Someone foolish enough to accept the job and then “just run the servers and software teams.”

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