Twitter is now worth one-third of the $44 billion Elon Musk paid to acquire the social media platform, according to Fidelity Investments, which has repeatedly slashed the value of their Twitter stake in previous months.
Forbes reports the reduction brings Twitter’s implied valuation to about $15 billion, nearly six months after it was purchased by Musk for $44 billion.
In March, Musk offered Twitter employees stock awards based on a $20 billion valuation.
Musk admitted in April his purchase of Twitter was not “financially smart,” saying in an interview with then-Fox News host Tucker Carlson that it remained to be seen whether the acquisition was a sound financial decision.
Fidelity owned about $20 million worth of Twitter before it was sold to Musk—the investment company reported a 56% markdown last November, when its stake was valued at nearly $8.6 million, and a 9.6% markdown the next month.
Musk’s acquisition of Twitter was a lengthy transaction for the company, as it adopted a poison pill defense commonly used to ward off hostile takeovers by diluting shares. The then-public company’s stock had significantly declined in the year leading up to Musk taking it private through his purchase.
After the buyout, Twitter’s revenue fell by 50% due to a “massive decline” in advertising, according to Musk, who also warned staffers the company could go bankrupt without significant subscription revenue.
Tesla shareholders were concerned Musk’s position as Twitter CEO was distracting him from issues hindering the electric automaker.
Earlier this month, Musk announced NBCUniversal advertising chief Linda Yaccarino would soon take over as CEO. Yaccarino managed a team of 2,000 who generated more than $100 billion in ad sales during her time at NBCUniversal.
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