San Francisco. Global investment firm Fidelity has reduced the valuation of Elon Musk's social media platform X (formerly Twitter) by 78.7 percent to $ 9.4 billion.
The X platform was purchased by the billionaire tech businessman in October 2022 for $44 billion.
TechCrunch reported, citing company filings, that X was now valued at less than a quarter of its $44 billion purchase price at the end of August.
The fund values its stake in X at about $4.18 million. Its value in July was $5.5 million.
No statement has been given by X, Fidelity and Musk on this report, which has been prepared on the basis of facts declared in the regulatory filings.
In May, an amount of $ 6 billion was raised by XAI, an artificial intelligence (AI) company run by Musk, to increase research and development in future technology.
In the information given by Musk, it was said that its premoney valuation is 18 billion dollars.
In October 2022, Fidelity invested $300 million in X. In 2023, Fidelity had reduced the valuation of X by 65 percent. In January this year, the company's valuation was reduced by 71.5 percent from the peak.
While taking a loan of $13 billion during the acquisition of Twitter, Musk told the banks that they would not suffer any loss in this deal. This loan is divided into three parts, which included a term loan of $6.5 billion, senior and junior bonds of $6 billion and a revolver loan of $500 million.
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Image Credit: KhasKhabar.