Fidelity, which helped Elon Musk acquire the platform formerly known as Twitter in late 2022, said its stake in the company fell 72% during that period, according to a Bloomberg analysis.
In November, Fidelity announced its current stake, unless the company sells its stake
Musk bought the company in October 2022 for $44 billion. If the company as a whole is also down 72% since its purchase, that means it’s now worth about $12.3 billion, or less than the $13 billion in debt the billionaire took on for the purchase that marked the platform.
That poses a problem for banks that hold Musk’s debt. You either have to sell it at a steep discount or continue to hold it and potentially watch its value continue to decline.
According to FT analysis earlier this week, X debt is expected to sell at a rate of 60 cents on the dollar. In total, this would mean a loss of $5 billion.
While the Twitter takeover has been a financial mess so far, Musk’s vast fortune will likely see him through regardless of the outcome. While Musk was in the process of completing the purchase, he sold large amounts of Tesla stock. (He owns about 13% of the carmaker’s shares.) The move shocked the market at the time, but shares have returned to healthy levels in recent months and the billionaire is back at the top of the world’s richest people.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
