Elon Musk has lost almost a third of Twitter's value, but his personal wealth remains intact

Elon Musk bought social media platform, Twitter, for $44 billion last year in October. Fidelity Fund, an investment firm, has revealed that he paid as much as three times the current value of Twitter. Interestingly, Musk has previously admitted that his decision of buying Twitter at $44 billion was not financially smart.

Twitter is now worth 33 per cent of what the billionaire purchased it for. With this estimation, Twitter is currently worth around $15 billion. This information came forth when Fidelity, which helped Musk finance the deal, detailed its own valuation of its own stake in Twitter.

Elon Musk’s wealth

As per the Bloomberg Billionaires Index, Elon Musk’s investment in Twitter is now worth $8.8 billion whereas he spent $25 billion to acquire the estimated 70 per cent stake in the company last year. A Bloomberg report further adds that Musk’s fortune reached $187 billion, erasing $850 million due to the loss in Twitter's valuation. However, the impact has been softened substantially because of a 63 per cent surge in Tesla’s share price.

Musk is well aware of the downfall in the valuation of Twitter. Back in April, Elon Musk stated in an interview, "We just revalued the company at less than half the acquisition price. I bought it for at least twice as much as it should've been bought for." However, he has expressed his belief that Twitter could achieve positive cash flow as early as this quarter, despite a decline in advertising revenue.

This is the third time that the valuation of Twitter has fallen since Musk’s takeover. Fidelity Blue Chip Growth Fund’s stake in Twitter, which now exists under Musk’s X Holdings Corp, was valued at nearly $6.55 million as of April 28, compared to $7.8 million as of January 31 and around $8.63 million at November-end.

Also Read: Elon Musk gets nod for human trials of Neuralink brain chip and Twitter users are divided

Twitter slapped with multiple lawsuits due to unpaid bills 

Adding to the slump, Elon Musk’s Twitter is being sued by many due to unpaid bills. Twitter has been sued by landlords of Twitter's offices in London, New York City and San Francisco for failing to pay rent. To this, Musk recently told its investor that he would only pay rent ‘over his dead body’. As per the lawsuit, Twitter's bills range from around $40,000 to $140,000 and most of these services were provided last year.

Recently, Joele Frank, a former public relations firm for Twitter, has filed a lawsuit against the social media giant, claiming that it has failed to settle outstanding invoices since Elon Musk's $44 billion buyout. The lawsuit states that Twitter owes a total of $8,30,498 to the PR firm.

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