In October of last year, billionaire Elon Musk purchased the social media company Twitter for $44 billion. Now, almost eight months later, Musk’s company is worth only a third of the price he paid, according to recent disclosures.
The disclosures come from the financial services giant Fidelity, which estimated in a monthly report that Twitter was worth about $15 billion, 33% of the price Musk paid in October.
In order to purchase Twitter, Musk was assisted by a group of outside investors, and Fidelity was part of the group. Since putting up money to back Musk, the company has marked down the company’s value twice.
Musk hasn’t held back when discussing his purchase of Twitter, acknowledging that he overpaid at the $44 billion price tag.
Since Musk took over, Twitter has continued to take on debt, now up to $13 billion, according to Fortune.
Part of the debt was caused by Musk’s decisions to reexamine the company’s content moderation policies, which led to advertising revenue falling 50%, Musk said in March.
However, the loss of advertisers hasn’t stopped Musk from trying to find new ways to bring in money, as he launched the Twitter Blue subscription service earlier this year. Still, less than 1% of users have signed up.
According to Bloomberg’s Billionaires Index, which uses Fidelity’s valuation to calculate the value of holdings, Musk’s investment in Twitter is now worth $8.8 billion, down from the $25 billion he spent to take a 79% stake in the company.
As for how this affected his personal wealth, Musk has lost $850 million from his $187 billion fortune, the index shared.
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