(GoRealNewsNow.com) – Billionaire Elon Musk has been hit with a new negative development after buying X, formerly known as Twitter, and attempting to rid it of leftist censorship. An investment company with shares in the social media platform has marked down its value by over two-thirds.
Specifically, Fidelity Investments has downgraded the valuation of its shares in X Holdings Corp., the parent entity of the social media platform formerly known as Twitter, by a significant 71.5%.
This markdown occurred about a year following the platform’s acquisition by Elon Musk in October 2022 for $44 billion.
The Guardian points out that Fidelity’s estimate would place the value of X at about $12.5 billion.
Fidelity paid $19.2 million to acquire a stake in X in October 2022. The fund manager made a valuation cut of 65% in October 2023.
According to a recent filing, Fidelity’s valuation adjustment in November alone was approximately 10.7%, reducing the estimated value from $6.3 million at the end of October to just under $5.6 million by the end of November.
This decline in valuation coincided with a series of controversies and scandals surrounding the platform under Musk’s ownership.
In November, Musk was subject to renewed allegations of anti-Semitism after he appeared to support a post that propagated an anti-Semitic conspiracy theory.
This incident was followed by reports from Media Matters for America, a left-leaning media watchdog organization, alleging that advertisements for mainstream brands were being displayed alongside pro-Nazi content on the platform.
As a result of these issues, many major companies decided to pause their advertising on the platform.
Musk’s response to this development was forthright and blunt. Speaking at The New York Times DealBook Summit in late November, he addressed the advertisers with a direct message.
“If someone is going to try and blackmail me with advertising, blackmail me with money, go f yourself,” he said. “Go f yourself. Is that clear? Hope it is,” Musk said.
Despite efforts to attract advertisers back to the platform, Musk continued to implement controversial changes to X.
He engaged in public disputes with groups monitoring hate speech and anti-semitism and faced intense scrutiny from the European Union.
The EU’s concerns focused on the platform’s apparent inability to effectively manage violent content and misinformation, particularly concerning the Israel-Hamas conflict.