After Elon Musk’s takeover, X has lost 71 per cent of its value: Report

Elon Musk-owned social media platform X (formerly Twitter) has lost 71.5 per cent of its value since the platform's takeover by the billionaire, said a disclosure made by mutual fund Fidelity accessed by Axios. Fidelity owns stake in X Holdings and has reportedly estimated that its stake has lost 71.5 per cent of its value.

The proportional effect on the total value of the social media platform brings its worth to about USD 12.5 billion. Musk had acquired Twitter at a price of USD 44 billion in October 2022.

The platform has faced many upheavals since Musk's takeover. Within weeks of taking control, Musk fired top management of Twitter including the then CEO Parag Agrawal.

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The company then carried out a huge job cut exercise during which nearly 50 per cent of its total staff was sacked. This had raised doubts about the stability of the platform.

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Reported increase in hate speech on X has seen advertisers shunning the platform. Musk's own posts, including some which were were reported to be 'endorsing anti-Semitic theory' created outrage and did little to boost the image of the platform.

Under Musk, X reinstated controversial accounts including those of former US president Donald Trump and conspiracy theorist Alex Jones.

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Trump faces a barrage of legal cases which include civil fraud allegations and those connected to the attack on US Capitol building in January 2021. He also faces rape charges which have been held as substantial. During his time as US president, Trump was a prolific tweeter and many of his tweets caused controversies. Even when his supporters attacked the US Capitol building he was criticised for not making an appeal to calm down soon enough.

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His Twitter account was suspended after the capitol building attack. This was before Musk acquired the platform.

Musk, the world's richest man, had said that he was buying Twitter “to try to help humanity”.

Under him, X also reinstated account of Alex Jones, the right-wing conspiracy theorist and host of InfoWars. He got into trouble for saying that a 2012 shootout at a school was a hoax perpetrated just to bring gun control laws.

Jones was ordered by a court to pay USD 1.5 billion to families of the victims of one of the deadliest shootouts in US history.

(With inputs from agencies)