After Elon Musk took over Twitter, there is not only chaos on the platform, which is now called X. The value of the company, which was still worth 44 billion US dollars at the time of the takeover, has also decreased significantly. But how much loss have investors really made?
Elon Musk’s takeover of Twitter in 2022 was anything but quiet. Musk initially announced his intention to take over the platform for a record sum of $44 billion.
A little later, it seemed as if he had changed his mind. But after Twitter shareholders approved the record offer of $54.20 per share, the takeover finally took place in October 2022.
Since then, the platform has gone through a lot – in addition to a name change from Twitter to X. The value of the company has also fallen significantly. But how much loss have Twitter investors actually made?
How much loss do Twitter investors have to bear?
Table of Contents
Table of Contents
Elon Musk did not raise the record-breaking takeover sum of 44 billion US dollars alone. Around a quarter of the sum came from investors. For a long time it was not known who actually participated in the purchase. But the US company had to disclose this as part of a lawsuit by former employees.
It emerged that, in addition to Musk, Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud and Twitter founder Jack Dorsey, among others, hold shares in the company.
But Russian oligarchs and well-known venture capitalists from Silicon Valley were also involved in the takeover. However, due to the high losses, investors are now likely to view their participation in this financing with mixed feelings. as the Washington Post reported.
This is how much money investors have lost
The calculations of the Washington Post are based on figures from the financial services provider Fidelity, which is also involved in the takeover. According to this, Fidelity’s share is now worth 72 percent less than at the time of purchase.
Based on these figures, the Washington Post determined how much money the investors lost. Elon Musk alone must have lost around 24 billion US dollars.
KI-Guide for free!
Sign up now for our weekly newsletter BT kompakt. As a thank you, we will give you our KI-Guide with 25 AI tools you should know right now!
The investment of Saudi Prince Alwaleed Bin Talar has also not paid off. According to calculations, around 529 million US dollars remain of the 1.89 billion US dollars he invested.
Twitter investors Jack Dorsey and Oracle founder Larry Ellison have to cope with a loss of around 720 million US dollars. Venture capitalist Sequoia has lost around 576 million US dollars and Andreessen Horowitz has lost 288 million US dollars.
Also interesting:
Here is a relevant PAA (People Also Ask) question for the title: **The Cost of Chaos: Twitter’s Steep Decline Under Elon Musk**:
The Cost of Chaos: Twitter’s Steep Decline Under Elon Musk
Since Elon Musk’s takeover of Twitter in October 2022, the social media platform has undergone significant changes, including a rebranding to X. However, the acquisition has also led to a substantial decline in the company’s value, leaving investors wondering how much they’ve lost.
A Record-Breaking Takeover
Musk’s $44 billion takeover of Twitter was a record-breaking deal, with around a quarter of the sum coming from investors [[2]]. The deal was finalized after Twitter shareholders approved the offer of $54.20 per share. The investors involved in the takeover included Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, Twitter founder Jack Dorsey, Russian oligarchs, and prominent venture capitalists from Silicon Valley.
The Value of X Plummets
Since the takeover, Twitter’s value has fallen significantly. Advertisers have been fleeing the platform, which has resulted in a substantial loss of revenue [[1]]. The company’s value has declined to the point where investors are now likely to view their participation in the takeover with mixed feelings.
The Extent of the Losses
According to calculations based on figures from financial services provider Fidelity, which is also involved in the takeover, the value of Fidelity’s share is now worth 72 percent less than at the time of purchase. Based on these figures, it’s estimated that Elon Musk alone has lost around $24 billion [[Washington Post]].
The Fallout
The decline of Twitter’s value has had a ripple effect on the platform itself. Many users have been looking for alternatives since Musk’s takeover, citing concerns about the spread of hatred and misinformation on the platform [[3]]. The exodus of advertisers has also led to a significant loss of revenue, further exacerbating the company’s financial woes.
Conclusion
The takeover of Twitter by Elon Musk has resulted in a significant decline in the company’s value, leaving investors to bear the brunt of the losses. With the platform’s value plummeting and advertisers fleeing, it remains to be seen how Musk will revive Twitter, now rebranded as X. One thing is certain, however: the cost of chaos on the platform has been substantial, and investors are paying the price.
What factors contributed to the 72% decline in Twitter’s value under Elon Musk’s leadership?
The Cost of Chaos: Twitter’s Steep Decline Under Elon Musk
Elon Musk’s takeover of Twitter in 2022 was anything but quiet. Musk initially announced his intention to take over the platform for a record sum of $44 billion. After Twitter shareholders approved the record offer of $54.20 per share, the takeover finally took place in October 2022. Since then, the platform has gone through a lot – in addition to a name change from Twitter to X. The value of the company has also fallen significantly. But how much loss have Twitter investors actually made?
How Much Loss Do Twitter Investors Have to Bear?
Elon Musk did not raise the record-breaking takeover sum of 44 billion US dollars alone. Around a quarter of the sum came from investors. For a long time, it was not known who actually participated in the purchase. But the US company had to disclose this as part of a lawsuit by former employees. It emerged that, in addition to Musk, Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud and Twitter founder Jack Dorsey, among others, hold shares in the company. But Russian oligarchs and well-known venture capitalists from Silicon Valley were also involved in the takeover. However, due to the high losses, investors are now likely to view their participation in this financing with mixed feelings [[3]].
This is How Much Money Investors Have Lost
According to reports, investors have lost a significant amount of money since Elon Musk took over Twitter. The calculations of the Washington Post are based on figures from the financial services provider Fidelity, which show that Twitter’s value has dropped by a staggering 72% since Musk’s takeover [[3]]. This means that investors have lost nearly three-quarters of their initial investment.
The loss of nearly half of the company’s revenue from advertising, as confirmed by Elon Musk himself, has significantly contributed to the decline in Twitter’s value [[1]]. The platform’s struggles to hold on to advertisers and its $13 billion debt have also weighed heavily on its valuation [[3]].
the takeover of Twitter by Elon Musk has resulted in significant losses for investors. With a 72% drop in value, it’s clear that the platform’s decline under Musk’s leadership has been steep. As the platform continues to navigate its new identity as X, investors will be watching closely to see if Musk can turn things around and restore the company’s value.
References:
[1] https://www.cnews.fr/vie-numerique/2023-07-16/twitter-elon-musk-confirme-la-perte-de-pres-de-la-moitie-des-revenus
[2] https://en.wikipedia.org/wiki/AcquisitionofTwitterbyElon_Musk
[3] https://fortune.com/2024/01/02/elon-musk-twitter-value-72-percent-drop-fidelity/
