Elon Musk's X gets another valuation cut from Fidelity | Hacker News Reader

Elon Musk's X gets another valuation cut from Fidelity

axios.com

16 pointsdoener12 comments

> Fidelity believes that X is worth 71.5% less than at the time of purchase, according to a new disclosure that runs through the end of November 2023 (Fidelity revalues private shares on a one-month lag).

Does this really matter? He fired something like tens of thousands of Twitter employees around the globe, he can keep the thing going as long as he likes. Advertisers are already crawling back.

Twitter costs billions to run even if he fires all employees.

Also you have no source on your claim about advertisers. Elon and Linda are always reporting that advertisers are coming back. Such as when Visa spent 20 usd on ads few months ago.

How do you figure it costs billions to run? Sounds like a crazy number. Millions, maybe.

For starters twitter is settled with about 12 billion in expensive debt as part of the purchase which cost about a billion of year in interest alone [0].

[0] https://gizmodo.com/twitter-elon-musk-debt-interest-social-m...

Let me guess. You can host it on a gaming laptop? I figured it by reading expenses from the public reports before Musk, subtracting costs for the fired employees etc. and he still can’t pay half his bills.

May we see it?

In June, Fidelity also cut the estimated worth of their holding in Reddit (~46% since initial investment) and Discord (~47% since initial investment) as well as Gupshup (~38% since initial investment). It was viewed as their assessment of the impact of the ongoing slowdown in the public market on privately-held startups.

Source: https://techcrunch.com/2023/06/30/fidelity-deepens-valuation...

Elon Musk has also stated that he overpaid for acquiring Twitter. Prior shareholders should be pleased they were able to realize an unexpected gain.

I would agree with him that he didnt pay a fair market value price, but it's harder to accept he overpaid. He initiated the deal, and agreed to the price, so he clearly paid the correct amount for him. The difference in price might be that he valued immediate control more than anyone else or he valued changing their censorship policies more than anyone else. But he paid what he wanted to pay to get it.

Oh. They knew that from day one. The former shareholders. The only clueless fella is Elon and his gullible partners.

Gupshup? Sounds made up.

It's a Hindi word for chit-chat.

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