Elon Musk has proven one thing since buying Twitter for $44 billion. He’s really bad at business. This is illustrated by this Bloomberg report:
Twitter is now worth just one-third of what Elon Musk paid for the social-media platform, according to Fidelity, which recently marked down the value of its equity stake in the company.
Musk has acknowledged he overpaid for Twitter, which he bought for $44 billion, including $33.5 billion in equity. More recently, he said Twitter is worth less than half what he paid for it. It’s unclear how Fidelity arrived at its new, lower valuation or whether it receives any non-public information from the company.
Fidelity first reduced the value of its Twitter stake in November, to 44% of the purchase price. That was followed by further markdowns in December and February.
If you buy something, and it is worth less than what you paid for it, you made a bad deal. You don’t need an MBA to figure that out. And it’s pretty clear that Elon has no clue how to turn that around. Because if he did, he would have done it already. Thus highlighting that he’s a bad businessman and now everybody knows it.
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This entry was posted on May 31, 2023 at 9:15 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed.
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Twitter’s Current Value Is 33% Of What Elon Musk Paid For It… WTF?
Elon Musk has proven one thing since buying Twitter for $44 billion. He’s really bad at business. This is illustrated by this Bloomberg report:
Twitter is now worth just one-third of what Elon Musk paid for the social-media platform, according to Fidelity, which recently marked down the value of its equity stake in the company.
Musk has acknowledged he overpaid for Twitter, which he bought for $44 billion, including $33.5 billion in equity. More recently, he said Twitter is worth less than half what he paid for it. It’s unclear how Fidelity arrived at its new, lower valuation or whether it receives any non-public information from the company.
Fidelity first reduced the value of its Twitter stake in November, to 44% of the purchase price. That was followed by further markdowns in December and February.
If you buy something, and it is worth less than what you paid for it, you made a bad deal. You don’t need an MBA to figure that out. And it’s pretty clear that Elon has no clue how to turn that around. Because if he did, he would have done it already. Thus highlighting that he’s a bad businessman and now everybody knows it.
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This entry was posted on May 31, 2023 at 9:15 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.