It seems that Elon Musk was not kidding when he acknowledged that he overpaid for social media platform Twitter. Musk acquired Twitter final yr at $54.20 per share, a deal that amounted to $44 billion. 

As per Constancy, one among Twitter’s buyers, the social media platform is now value nearly one-third of what Elon Musk paid final yr. Constancy didn’t present particulars about the way it arrived at its estimate or if it acquired personal disclosures from Twitter. The agency, nonetheless, marked down the worth of its fairness stake within the social media platform. 

This was not the primary time that Constancy diminished the worth of its Twitter stake. Again in November, the agency diminished the worth of its stake to 44% of the acquisition worth. Additional markdowns in December and February had been additionally applied, as famous in a Bloomberg Information report.

Twitter has seen its personal fair proportion of challenges since Elon Musk accomplished his acquisition of the corporate. Musk began his turbulent management of Twitter by terminating a big portion of the corporate’s employees, a transfer that caught the ire of many. The CEO then applied a fast launch of options that had been meant to make the platform extra enticing to customers, and maybe even encourage individuals to join Twitter Blue, a paid service. 

Up to now, Musk’s efforts to advertise Twitter Blue appear to solely have a marginal impact, as lower than 1% of the platform’s customers are estimated to have opted in to the service. Musk’s habits on the platform, in addition to his rising political stance, have additionally confirmed to be polarizing, even to his longtime supporters. 

That being stated, Musk has maintained that Twitter is heading in the right direction, no less than financially. As per Musk’s feedback from April, Twitter has already reached some extent the place it’s roughly breakeven. And if issues go nicely, Musk estimated that Twitter may truly be cash-flow constructive lower than a yr since he acquired the corporate. The upcoming takeover of promoting veteran Linda Yaccarino as Twitter’s new CEO has additionally been welcomed by organizations resembling GroupM, a premier media company. 

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Twitter is value only a third of Musk’s $44 billion funding: Constancy