The value of social network X has been in free fall since Elon Musk’s purchase two years ago.
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The company’s interest would have fallen by around 80%, according to estimates by the investment firm Fidelity.
As a reminder, Musk paid nearly $60 billion to obtain shares in the social network Twitter, which subsequently renamed it to X. He also withdrew the company from the stock market.
Fidelity’s new valuation implies that X would now be worth only $12 billion.
The fall is reflected in the reduction in advertising revenues of the company, which no longer publicly publishes its quarterly financial indicators, according to the financial investment service.
“Musk clearly overpaid for this asset,” Wedbush Securities managing director and senior equity analyst Dan Ives told CNN.
According to him, Twitter was worth $40 billion when Musk bought it and today, its value would be around $20 billion.
Ives adds, in an email sent to the American media, that even if publications on X create more interactions, the reduction in advertising revenue is still felt.
