{"id":592948,"date":"2023-01-01T05:49:55","date_gmt":"2023-01-01T11:49:55","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/01\/fidelity-slashes-the-value-of-its-twitter-stake-by-over-half\/"},"modified":"2023-01-01T05:49:55","modified_gmt":"2023-01-01T11:49:55","slug":"fidelity-slashes-the-value-of-its-twitter-stake-by-over-half","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/01\/fidelity-slashes-the-value-of-its-twitter-stake-by-over-half\/","title":{"rendered":"Fidelity slashes the value of its Twitter stake by over half"},"content":{"rendered":"
\n

Fidelity, which was among the group of outside investors that helped Elon Musk finance his $44 billion takeover of Twitter, has slashed the value of its stake in Twitter by 56%. The recalculation comes as Twitter navigates a number of challenges, most the result of chaotic management decisions \u2014 including an exodus of advertisers from the network.<\/p>\n

Fidelity\u2019s Blue Chip Growth Fund stake in Twitter was valued at around $8.63 million as of November, according to a monthly disclosure and Fidelity Contrafund notice first reported<\/a> today by Axios. That\u2019s down from $19.66 million as of the end of October.<\/p>\n

Macroeconomic trends are likely to blame in part. Stripe took<\/a> a 28% internal valuation cut in July, while Instacart this week reportedly<\/a> suffered a 75% cut to its valuation.<\/p>\n

But Twitter\u2019s wishy-washy policies post-Musk clearly haven\u2019t helped matters.<\/p>\n

The network\u2019s become less stable at a technical level as of late, on Wednesday suffering outages<\/a> after Musk made \u201csignificant\u201d backend server architecture changes. Twitter recently laid off employees in its public policy and engineering department, dissolving<\/a> the group responsible for weighing in on content moderation and human rights-related issues such as suicide prevention. And the company\u2019s raised the ire of regulators after banning \u2014 and then quickly reinstating \u2014 accounts belonging<\/a> to prominent journalists.<\/p>\n

Then again \u2014 as Axios business editor Dan Primack pointed out, appropriately in a tweet \u2014 Fidelity seems to rely heavily on public market performance where it concerns valuations. It\u2019s quite possible that the firm doesn\u2019t have any inside info on Twitter\u2019s financial performance.<\/p>\n

Cutbacks at Twitter abound as the company approaches<\/a> $1 billion in interest payments due on $13 billion in debt, all while revenue dips. A November report from Media Matters for America estimated<\/a> that half of Twitter\u2019s top 100 advertisers, which spent almost $750 million on Twitter ads this year combined, appear to no longer be advertising on the website. Twitter\u2019s heavily pushing its Twitter Blue plan, aiming to make it a larger profit driver. But third-party tracking data<\/a> suggest it\u2019s been slow to take off.<\/p>\n

Some Twitter employees are bringing their own toilet paper to work after the company cut back on janitorial services, the New York Times recently reported<\/a>, and Twitter has stopped paying rent for several of its offices including its San Francisco headquarters.<\/p>\n

Musk has attempted to save around $500 million in costs unrelated to labor, according to the aforementioned Times report, over the past few weeks shutting down a data center and launching a fire sale after putting office items up for auction in a bid to recoup costs.<\/p>\n

Separately, Musk\u2019s team has reached<\/a> out to investors for potential fresh investment for Twitter at the same price as the original $44 billion acquisition, according<\/a> to The Wall Street Journal.<\/p>\n

A poll put up by Musk asking if he should step down as head of the company closed December 19 with users voting resoundingly<\/a> in favor of him leaving. Musk responded several days afterward, saying he\u2019d resign as CEO \u201cas soon as [he found] someone foolish enough to take the job\u201d and after that \u201cjust run the software and servers teams.\u201d<\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Kyle Wiggers<\/p>\n","protected":false},"excerpt":{"rendered":"

Fidelity, which was among the group of outside investors that helped Elon Musk finance his $44 billion takeover of Twitter, has slashed the value of its stake in Twitter by 56%. The recalculation comes as Twitter navigates a number of challenges, most the result of chaotic management decisions \u2014 including an exodus of advertisers from<\/p>\n","protected":false},"author":1,"featured_media":592949,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27618,26404,46],"tags":[],"class_list":{"0":"post-592948","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fidelity","8":"category-slashes","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/592948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=592948"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/592948\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/592949"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=592948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=592948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=592948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}