Fidelity, which was among the group of outside investors that helped Elon Musk finance his $44 billion takeover of Twitter, has slashed the value of its stake in Twitter by 56%. The recalculation comes as Twitter navigates a number of challenges, most the result of chaotic management decisions — including an exodus of advertisers from the network.
Fidelity’s Blue Chip Growth Fund stake in Twitter was valued at around $8.63 million as of November, according to a monthly disclosure and Fidelity Contrafund notice first reported today by Axios. That’s down from $19.66 million as of the end of October.
Macroeconomic trends are likely to blame in part. Stripe took a 28% internal valuation cut in July, while Instacart this week reportedly suffered a 75% cut to its valuation.
But Twitter’s wishy-washy policies post-Musk clearly haven’t helped matters.
The network’s become less stable at a technical level as of late, on Wednesday suffering outages after Musk made “significant” backend server architecture changes. Twitter recently laid off employees in its public policy and engineering department, dissolving the group responsible for weighing in on content moderation and human rights-related issues such as suicide prevention. And the company’s raised the ire of regulators after banning — and then quickly reinstating — accounts belonging to prominent journalists.
Then again — as Axios business editor Dan Primack pointed out, appropriately in a tweet — Fidelity seems to rely heavily…
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