Twitter now worth just a third of what Musk paid for it
- Reference: 1685550967
- News link: https://www.theregister.co.uk/2023/05/31/twitter_value_decline/
- Source link:
Fidelity's Blue Chip Growth Fund had an $8.63 million investment in Twitter last November, a decrease to just 44 percent of what it held when Twitter was purchased. In January 2023 it reported the value of its share was reduced to $7.8 million, and [1]as of late April was worth just $6.5 million (Fidelity's Twitter investment is now listed under X Holdings Corp, Twitter's new parent company).
It's [2]not immediately clear how Fidelity arrived at its lower valuation, or if it was based on non-public information from inside Twitter, but it represents continued financial trouble for the social media company, which has been on a steady decline since Musk's [3]admittedly overpriced purchase.
[4]
Shortly after closing the deal to buy Twitter last October, Musk said that he'd overpaid for the right to buy Twitter, justifying it by asserting "the long-term potential for Twitter, in my view, is an order of magnitude greater than its current value."
[5]
[6]
Since then, the company has been faced with a [7]number of legal challenges alleging it has simply stopped paying its bills (both to vendors and employees). It also [8]fired most of the people working for it, continued to experience glitches and crashes, and has [9]alienated a lot of advertisers that, depending on who you ask, may have yet to return.
Twitter kills an API party
Block Party, a service that automates the blocking of trolls and bad actors on social media, [10]announced it was leaving Twitter, effective today, because Twitter's [11]paid API scheme made it impossible for the startup to afford to keep doing business.
"I started Block Party because it felt unfair and terrible that we were just supposed to accept harassment as the price of being online," [12]said developer Tracy Chou. "It will suck to return to a Twitter experience that doesn't have Block Party as a filter. I truly am so sorry and extend my most heartfelt apology to everyone that we won't be able to protect on Twitter anymore," Chou added.
While its Block Party product is on hold on Twitter, Chou and company are working on a browser addon called [13]Privacy Party that centralizes social media privacy controls under one dashboard. It's in alpha and currently supports Twitter, Facebook, and Venmo with plans to add other platforms.
Twitter has also failed to get much traction for its paid Blue subscription service, with [14]less than a percent of Twitter users reportedly having signed up for the $8/month service as of April.
[15]EU tells Twitter 'you can run but you can't hide' from disinformation policy
[16]Twitter Spaces groans under weight of Ron DeSantis and Elon Musk's egos
[17]SCOTUS rules Google and Twitter didn't contribute to terrorist attacks
[18]Ex-Twitter sextet sues Elon Musk for 'stiffing' them on severance
Among all that was the March leak of an [19]internal Twitter memo setting stock grant valuations for employees that estimated Twitter was worth $20 billion – less than half of what Musk paid for it, and that's right from the memo pad of the man himself.
Let's not forget about the massive interest payments that Musk saddled Twitter with either. The billionaire's purchase of the site required him to get the backing of a number of investors, who chipped in around $13 billion of the $44 billion Musk paid for the platform. Interest payments on that debt are around $300 million, which Bloomberg said has already been paid [20]twice to a group of seven banks who aided Musk but have reportedly been unable to sell the debt.
Musk [21]claimed last month that Twitter was roughly at the "break even" point, though hasn't provided evidence that's actually the case. What has been estimated from the information that's publicly available is Musk's own share in Twitter, which was estimated by Bloomberg for its billionaires index.
[22]
According to the publication, Musk's personal investment of more than $25 billion to buy Twitter is now worth just $8.8 billion. Like the company as a whole, Musk's investment is worth just around a third of what it was seven months ago. ®
Boomnote
A tweet went viral the other day with a fake picture of the Pentagon on fire and a claim it started from an explosion. That attack or blaze never happened; it was made up. Now Twitter's [23]extended its Community Notes – little crowdsourced fact-check notes that can appear on dodgy tweets – to images. Thus, messages on accuracy and validity can appear on media to warn people of fake info.
Get our [24]Tech Resources
[1] https://www.actionsxchangerepository.fidelity.com/ShowDocument/ComplianceEnvelope.htm?_fax=-18%2342%23-61%23-110%23114%2378%23117%2320%23-1%2396%2339%23-62%23-21%2386%23-100%2337%2316%2335%23-68%2391%23-66%2354%23103%23-16%2369%23-30%2358%23-20%2376%23-84%23-11%23-87%230%23-50%23-20%23-92%23-98%23-116%23-28%2358%23-38%23-43%23-39%23-42%23-96%23-88%2388%23-45%2336%2375%23118%2350%23-101%23-95%23116%2327%23-74%235%23-89%23-105%23-67%23126%2377%23-126%23100%2345%23-44%23-73%23-15%238%23-21%23-37%23-17%23-14%23-98%23123%23-18%2345%23-59%23-82%2367%2383%23112%2317%2370%23-78%2378%23-50%2336%23-86%23-90%2381%23-21%23-119%23-30%23120%2349%2328%23-98%2333%2351%23-78%23-119%23-16%2350%23-58%2350%23102%2348%23-17%2352%23-99%23
[2] https://www.bloomberg.com/news/articles/2023-05-30/twitter-is-worth-33-of-musk-s-purchase-price-fidelity-says
[3] https://www.theregister.com/2022/10/20/musk_overpaying_twitter/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZHfDdgd3lpFsKUbE8b0HzAAAAM0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZHfDdgd3lpFsKUbE8b0HzAAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZHfDdgd3lpFsKUbE8b0HzAAAAM0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2023/05/18/twitter_staff_sue_musk/
[8] https://www.theregister.com/2023/05/25/twitter_spaces_ron_desantis/
[9] https://www.theregister.com/2023/04/19/musk_says_twitter_advertisers_can/
[10] https://twitter.com/blockpartyapp_/status/1663688198437101570?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1663720334732738565%7Ctwgr%5Ee7b7c0d9765c251c38347a2e8c3a486c61fd3481%7Ctwcon%5Es3_&ref_url=https%3A%2F%2Fwww.theverge.com%2F2023%2F5%2F31%2F23743538%2Fblock-party-hiatus-twitter-app-anti-harassment-service-api
[11] https://www.theregister.com/2023/02/02/twitter_eliminating_all_free_api/
[12] https://twitter.com/triketora/status/1663720334732738565?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1663720334732738565%7Ctwgr%5Ee7b7c0d9765c251c38347a2e8c3a486c61fd3481%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.theverge.com%2F2023%2F5%2F31%2F23743538%2Fblock-party-hiatus-twitter-app-anti-harassment-service-api'
[13] https://www.blockpartyapp.com/waitlist/
[14] https://www.bloomberg.com/news/articles/2023-04-04/musk-s-month-pushing-twitter-blue-failed-to-win-many-subscribers
[15] https://www.theregister.com/2023/05/30/twitter_disinformation/
[16] https://www.theregister.com/2023/05/25/twitter_spaces_ron_desantis/
[17] https://www.theregister.com/2023/05/19/us_supreme_section_230/
[18] https://www.theregister.com/2023/05/18/twitter_staff_sue_musk/
[19] https://www.theguardian.com/technology/2023/mar/26/elon-musk-twitter-value-leaked-memo-less-than-half-paid
[20] https://www.bloomberg.com/news/articles/2023-05-03/twitter-said-to-make-second-interest-payment-on-musk-buyout-debt?leadSource=uverify%20wall
[21] https://www.reuters.com/technology/elon-musk-says-twitter-is-roughly-breaking-even-2023-04-12/
[22] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZHfDdgd3lpFsKUbE8b0HzAAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[23] https://twitter.com/CommunityNotes/status/1663609484051111936
[24] https://whitepapers.theregister.com/
Re: Lesson on use of the sed command
I suspect that the other backers had motives other than making money off this investment. Backing Musk in this venture might get them access to more lucrative deals in the future, etc.
Re: Lesson on use of the sed command
You mean, additional tax deductions?
Re: Lesson on use of the sed command
Or maybe they liked that he planned to create a safe space for all white supremacists that had been kicked off Twitter in the name of "maximal free speech" (unless you criticize Musk himself of course)
Re: Lesson on use of the sed command
And for the Saudis, it was a cheap way to get access to all of their dissidents’ DMs
Re: Lesson on use of the sed command
Twitter is a lot lot better since Musk took over. The old Twitter refused to accept racism against whites and was so so left wing the the ghost of Stalin stalked.
I dont use it very much but I havent seen any white supremacists. I seen plenty of black supremacists and a ton of anti-white racist posts though. And I've seen black racist be banned as well. That would never have happened before. They were free to incite white genocide.
It is much more balanced now. Let's not forget the left have just any many if not more loonies on there than the right. Musk is balancing the loonies. Like you, you Commie.
Re: Lesson on use of the sed command
For the life of me, I cannot tell if this is sarcasm or not.
This happens to me so frequently not that I am worried that I might have COVID induced brain fog.
Re: Lesson on use of the sed command
Without the /s tag, it's not your job to figure it out.
So don't second guess yourself.
Re: Lesson on use of the sed command
Indeed; it's generally a courtesy to put that at the end of the comment or even "/sarcasm" to drive home the point, especially since anons can't use the troll icon as demonstrated.
Re: Lesson on use of the sed command
Sadly, it's impossible to differentiate, these days. I suspect that the "you commie" signoff is the tipoff.
Re: Lesson on use of the sed command
You forgot the /s tag.
You DID forget the /s tag, right?
RIGHT?
Re: Lesson on use of the sed command
His backers didn't and don't care about profit, they want control of propaganda. Specifically, hate propaganda.
Re: Lesson on use of the sed command
The banks painted themselves into a corner by backing Elon initially and after all of the faffing about the financial landscape had changed and those banks didn't have a ready supply of suckers to purchase the loans giving those banks a nice payday and no forward risk. Elon himself did a bunch of damage through bad-mouthing the company in his attempt to back out of the signed contracts without paying the breakup fee.
Don't get on the rollercoaster unless you really want the ride.
Re: Lesson on use of the sed command
not sure about that. those investors take risks / blindly make mistakers like this all of the time. Sino Forrest anyone ? Bre-X, ...
Just fucking die twitter
It's just a garbage platform now, just die and get it over with. Who are these fools still using it?
Re: Just fucking die twitter
Definitely some media organizations still use it. I follow sports on a big-name website, and whenever they have an article about somebody making a great golf shot, or hitting a home run, or scoring a touchdown, the article is sure to include a link to a short video clip onTwitter. That's my only use of Twitter (I don't have an account but sometimes I want to see the home run flying out of the park) and I have noticed no change whatsoever in the last nine months.
Re: Just fucking die twitter
Journalists are addicted to it. They love the attention, and they love that they can just write about who's tweeting what and then head to the pub instead of having to do actual reporting.
Re: Just fucking die twitter
"Who are these fools still using it?"
News companies use it. I see articles all of the time that are nothing more than copy/paste of Twits (or is that tweets?)
I wonder what will be left of the $10 10 (*) when all the lawsuits have been decided about twitter not paying their bills. I can imagine that a minus sign will have to be put in front of the number.
(*) rounded down to take care of inflationary pressure aired at next tweet(s)
...
It is said that an accountant is a person who knows the cost of everything and the value of nothing.
It looks like Elon fails at even that.
Can't believe Musk thinks it could be worth 10x what he paid
Driving away advertisers and users doesn't seem to be the way to accomplish that, though that has a better chance of success (i.e. if it becomes the social media home base for all the MAGA types like him) than his stupid idea of the "everything app". Even the most dyed in the wool true believer is not going to trust Musk with all their banking, shopping, personal messaging and so forth.
Dunno why he can't let go of that idiotic wet dream from his "x.com" days.
Re: Can't believe Musk thinks it could be worth 10x what he paid
"i.e. if it becomes the social media home base for all the MAGA types like him"
better that than the pseudo KGB commie left-wing hellhole it was before. But it isn't, is it? It is still full of Antifa-type far-left Commies and they still love it. What they don't like is that they can longer silence opposing thoughts with the ease they had before.
I no Musk fan, but you've got to admit he has got style. Anyway, the balanced Twitter is just a short-term thing. The new CEO is lefter than Stalin. Don't worry, you will be able to go back to blaming white men for everything soon.
Re: Can't believe Musk thinks it could be worth 10x what he paid
but you've got to admit he has got style
No he doesn't, he's a nutcase. No one would listen to a thing he said if he wasn't worth $100 billion. He's changed so much over the past few years that either he decided he no longer needed to hide who he really was or he's suffering from some sort of mental illness or brain damage. I wonder more and more if he's had one of those neuralink brain implants installed and that's why he's go so far off the deep end.
It will suck to return to a Twitter experience that doesn't have Block Party as a filter
This is erroneously assuming that there is now a worthwhile "Twitter experience" possible without encountering trolls. Trolling is now its chief purpose, so just block the entire site.
Even better, offer a paid $10 a month "green tick" service to individual twitter users, where you check they're NOT trolls and add an exception to allow access to their account. Musk would like that.
Re: It will suck to return to a Twitter experience that doesn't have Block Party as a filter
"Even better, offer a paid $10 a month "green tick" service to individual twitter users,"
So not only are you the product if you use the service, you have to pay them too?
Excuse me, I'm heading out to the garden for some peace and a pint.
Re: It will suck to return to a Twitter experience that doesn't have Block Party as a filter
I should have been clearer : I was suggesting that Block Party should offer the service, there's no way I'd trust Musk with deciding wh's a troll and who isn't.
Crazy valuation??
Pre-Musk Twitter was losing money fast and was apparently worth $30-something bn.
Surely if they're approaching break-even it's financially healthier?
Valuation seems to be based on wishful thinking of being able to monetize number of users sometime in the future rather than on current income and cash flow.
Buying Twitter for $44bn was insane, but if Twitter can keep running with half the user base but 10% of the workforce it surely is more profitable and therefore more valuable?
Re: Crazy valuation??
@jmch:
There are additional costs now, something called "Interest Payments", and things like "Unpaid Bills" and fallout in the form of "Lawsuits for Unpaid Bills and missed Interest Payments".
Its a spiral, and since the puffball of value was so outrageously high when it started, its going to take a while before it plows face first into the basement floor.
Re: Crazy valuation??
I'm not sure how much it will be worth when they're thrown out of their buildings and, worse, out of the data centres for not paying their bills.
Re: break even
There's no use in working towards the accounting construct of "break even" if doing so makes the product unsellable. A hand-built Ford Focus ST selling for $85,000 might be the "break even" point but nobody would buy it, still making it a massive loss.
Firing employees only managed to create a downward death spiral. With less ability to moderate toxicicity, less network stability, and less ability to improve the interface, Musk will only lose both users and the advertisers that target them. Which will lead to more budget cuts in an attempt to seek that reduced break even point. Rinse, repeat, sign off time.
Vanity Pair
Coincidentally, the latest issue of Private Eye (#1599) 2 June-15 June, mentions Twitter/Musk under the above title...
Research from the Pew Institute suggesting that "a quarter of Twitter's current users are "not very" or "not at all" likely to still be using the platform in a year"
... "the same research found that mentions of "Elon Musk" have doubled since he bought the platform."
Linda Yaccarino's GoFundMe Page
Would it raise $10K before that's all that Twitter is worth?
I thought a blue chip share as one which was a reliable money maker. AFAIK Twitter never was that so why did Fidelity put it in such a fund?
Oh.
Dear.
How.
Sad.
Never.
Mind
Lesson on use of the sed command
echo "The billionaire's purchase of the site required him to get the backing of a number of investors" | sed s'/investors/gullible\ fools/'