In one year, X has lost half its value
Since billionaire Elon Musk bought the social media platform X under the name Twitter, it has lost considerable value, several media outlets have reported.
X was valued at 19 billion dollars in a stock grant to employees, according to Fortune magazine and financial news agency Bloomberg. Musk paid around 44 billion dollars for Twitter in October 2022. Since then, Musk has rebranded the platform and announced plans to turn X into an app with more features, including financial services.
The platform has suffered a significant drop in advertising revenue since the acquisition. Musk has said on several occasions that it is half of what it used to be. Many companies avoid X as an advertising platform, fearing a negative impact on their brand.
The billionaire is trying to offset the losses with subscription revenue. He has also borrowed around 13 billion dollars for the acquisition, which X estimates will cost about 1.2 billion dollars a year in interest.
© ANP / Hollandse Hoogte / Jaap Arriens