Elon Musk stated that a year after purchasing Twitter, the value of the company dropped by half. Despite the changes, the company’s value did not increase and there was a huge decline in advertising revenues.
Elon Musk announced that social media platform X, formerly known as Twitter, is now worth less than half the price he bought it for. Musk stated that it was worth less than half of the $44 billion he paid last year, and this did not surprise market experts.
Elon Musk Reduced Twitter’s Value to Less than Half
According to Fortune magazine, Musk gave shares to the company’s current employees on Monday, October 30, stating that the company’s value is $19 billion. This represents a 55% loss in value compared to the date of Twitter acquisition.
Musk bought Twitter for $44 billion in April last year. However, the huge decline in the stock market caused the deal to fall through in a short time. Although Musk gave various reasons to back out of the deal, Twitter was eventually purchased for the agreed amount.
After taking over Twitter, Musk completely redesigned the platform. However, these changes did not have the expected effect of increasing the value of the company. Additionally, there was a 50% drop in ad revenue and many advertisers left the platform.
This loss of value coincides with an increase in conspiracy theories, misinformation and other problematic content on the platform.