quote:
Twitter’s value has plummeted by almost two-thirds since Elon Musk acquired the company in October 2022, one of the social media company’s only remaining external investors has admitted.

Fidelity, an asset manager that held a stake in Twitter worth about $20m after Musk acquired the business for $44bn, said in a corporate filing that its stake was now worth just under $6.6m. That would value the overall company, now officially called X Holdings Corp after Musk’s early venture X.com, at just $14.75bn.

Not a defense, but isn't this a bit misleading. As I recall, the accepted valuation of Twitter was significantly lower than the $44b he paid, and was likely part of the reason he tried to get out of the deal before it closed.

So it would be inaccurate to say he's responsible for all of that devaluation, and a real analysis would rather much more effort than the quote provides, factoring in such things as overall losses in tech valuations and so forth.

In a nutshell, there's a difference between overpaying and destruction of value from management decisions. Similar to overpaying for a house vs letting goats poop inside of it afterwards.

This post was edited on 11/29/23 at 6:18 pm

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Posted by jrowla2

Colorado

Member since Jan 2007

4084 posts

Posted on 11/29/23 at 10:12 pm to Teddy Ruxpin

quote:
Not a defense, but isn't this a bit misleading. As I recall, the accepted valuation of Twitter was significantly lower than the $44b he paid, and was likely part of the reason he tried to get out of the deal before it closed. So it would be inaccurate to say he's responsible for all of that devaluation, and a real analysis would rather much more effort than the quote provides, factoring in such things as overall losses in tech valuations and so forth. In a nutshell, there's a difference between overpaying and destruction of value from management decisions. Similar to overpaying for a house vs letting goats poop inside of it afterwards.

Just by changing the name from twitter to x, it devalued the company 10s of billions of dollars. He was solely responsible for that decision.

He then had made multiple tweets, showing how idiotic and possibly-anti-Semitic he is, and then showing ads of companies that advertise with X, who do not want to be affiliated with racist/homophobic/anti-semitic, alongside that material. Advertisers decide they don’t like that and stop doing businesses with X.

Freedom of speech goes both ways. Just as Elon and whoever say and do what they want, so can Corporations decide they no longer want to advertis and fund a platform that tolerates hate speech.

Elon has lost his company billionS of dollars.

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Posted by Jcorye1

Tom Brady = GoAT

Member since Dec 2007

71584 posts

Posted on 11/30/23 at 7:16 am to Teddy Ruxpin

quote:
but isn't this a bit misleading

It obviously is. Just because something is arms length doesn't mean it's instantly it's value. It's hilarious once you read these threads and people start shouting about PE stuff that is light years beyond them.

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