Payments

Bank writes down Elon Musk's X (Twitter)

Photo: Backcountry Media - stock.adobe.com

October 31, 2023

Fidelity, one of the banks that financed Elon Musks' purchase of Twitter (now renamed X), has devalued the company. It devalued it by 8%, representing a total decrease of 65% since Musk purchased the company late in 2022 for $44 billion, according to a report by Gizmodo.

The social media website has struggled since Musk purchased it, as advertisers have left the platform due to their advertisements being run next to racially charged or other questionable Tweets.

In response to this news, X said that all employees would receive restricted stock units as part of their compensation. These stocks will be worth $45 and in total will give the company a value of $19 billion, a nearly 57% decrease of the $44 billion Musk used to purchase the platform.

Last year, multiple banks, including Morgan Stanley, Bank of America and Barclays, chose to hold on to the debt acquired when they lent Musk $13 billion in financing to acquire Twitter rather than selling the debt to investors.