A Fidelity fund has slashed its estimate of Twitter’s value “amid ongoing chaos at the company, implying the social media platform may be worth only a third of its value compared to when Elon Musk acquired it in October,” reports CNN Business.
According to a monthly disclosure, Fidelity’s Blue Chip Growth Fund reported that its stake in Twitter was worth $6.55 million at the end of April, adds CNN.
“That’s down from the $19.66 million the Fidelity fund said its stake was worth in October as Musk was finalizing the acquisition. The revision implies Twitter may be worth only $15 billion overall,” as opposed to Musk’s $44 billion purchase price, reports CNN.
Fidelity did not provide a reason for the markdown in its disclosure nor an explanation of how it arrived at its valuation, “but the adjustment coincides with widespread public blowback to Musk’s erratic decision-making,” states CNN.