Almost seven months after Elon Musk bought Twitter for $44 billion, the tech entrepreneur has failed to revitalize the company’s fortunes. Financial services firm Fidelity currently values the app at just 33% of Musk’s purchase price.
Musk completed his high-profile takeover of the microblogging site in October, fulfilling a longstanding desire to become Twitter boss.
tech billionaire was criticized for waste Twitter at the time of acquisition. Musk paid Twitter $44 billion, leaving the stock at $33.5 billion. But Musk also admitted to overpaying, saying he was only worth half what he paid.
“Myself and other investors are clearly overpaying for Twitter right now. In my opinion, Twitter’s long-term potential is orders of magnitude greater than its current value.” Said Musk.
In an email sent to employees by Musk himself, Twitter was valued at $20 billion in March.
Reminder: Elon Musk spent too much money on Twitter purchases from his ego and wants you to buy them through a subscription plan 😂
—tridder.pugs (@tridder46290) November 3, 2022
Twitter struggles under mask administration
After Musk’s acquisition, many companies and corporations cut ties with the platform. Musk’s erratic decision-making and management style have been blamed for alienating many advertisers.
Ford, General Motors, Volkswagen, General Mills, Mondelez, Pfizer and United Airlines are among the major companies to suspend or remove ads from Twitter over concerns about hate speech and conspiracy theories.
International advertising and consulting firm Interpublic, which represents American Express, Coca-Cola, Fitbit, Spotify and dozens of other major companies, has also stopped advertising on the platform. The cut cost Twitter $24 billion. Given the recent outflow of advertisers, that’s not surprising. fidelity Decreasing the value of Twitter, it remains unclear exactly how it arrived at its final valuation.
In November, Fidelity initially reduced the value of Twitter shares to 44% of the purchase price. This was followed by price cuts in December and February.
“In 2021, Twitter will generate more than $4.5 billion in advertising services revenue, up from $3.2 billion the year before,” the magazine said. Statista.
Also read: Six months of Twitter under Elon Musk
Additionally, the microblogging platform generated approximately $571 million in data licensing revenue, up from $508 million in 2020.
insider information projected “Twitter advertising revenue will reach $4.74 billion worldwide in 2023.” We’ve lowered our forecast by nearly $2 billion to just $2.98 billion because we’re working on technology.”
Twitter Blue: Flopcard
Twitter Blue, a subscription-based authentication checkmark with a range of features, remains one of the most popular changes during Musk’s short tenure.
In November, Tesla chiefs said: introduced A feature called “Blue for $8/month” introduced a significant change to Twitter’s policy by providing a verification checkmark known as a Blue tick.
This feature also comes with additional benefits such as the ability to edit tweets, half ads, long tweets, text formatting, bookmark folders, NFT profile pictures, etc.
Interestingly, though, this change has been mimicked by Facebook and Instagram owner Meta, whose subscription service Meta Verified allows users to add blue checkmarks to their accounts.
You also get:
– Prioritize replies, mentions and searches essential to stop spam/fraud
– Ability to post long videos and audios
– Halves the number of ads
— Elon Musk (@elonmusk) November 1, 2022
Musk faced charges of charging users for the $44 billion he invested to become president. Twitter Blue Despite Criticism For Removing Traditional Checkmarks From Popular Accounts generated $11 million on mobile in the first three months as a new product.
Twitter says the amount produced is slightly less than expected have 368 million monthly active users worldwide.
But as Musk seeks to develop it into a flagship product under the Twitter umbrella, Twitter is adding even more features to its paid verification badges.