Elon Musk's Twitter now worth $15 billion, a third of the price tag

According to Fidelity, Twitter's current valuation stands at $15 billion, approximately one-third of the $44 billion that Elon Musk paid for the platform in 2022, reports CBS News.

Fidelity, an asset manager that holds an equity stake in Twitter under X Holdings Corp, had previously reduced its valuation by over 55% towards the end of last year, shortly after Musk's acquisition.

A series of unpopular decisions have seen Twitter's value nosedive.

The acquisition was followed by a troubled and widely criticised launch of a subscription service for Twitter blue tick and the banning of journalists.

This resulted in advertiser concerns and more than half of them suspending their spending on the social media platform, slashing Twitter's revenue almost completely.

In an effort to boost revenue, Musk appointed former advertising media executive Linda Yaccarino as the new CEO earlier this month, as the cost of Twitter shares continued to decline.

During Musk's tenure, Twitter has experienced significant layoffs, with the workforce reduced to less than 2,000 employees from its previous size of 7,500. Additionally, Musk has faced legal challenges related to unpaid rent on Twitter's office spaces, resulting in multiple lawsuits.

Musk's recent attempt to launch an encrypted messaging service was met with criticism from security experts.

Although Fox News' former host Tucker Carlson holds the platform as the last one to allow free speech, Musk faced criticism for yielding to censorship demands from the Turkish government during a contested election that ultimately resulted in the victory of President Recep Tayyip Erdogan.

As Twitter continues to grapple with various challenges, its value under Musk's ownership has significantly diminished from the hefty price tag he paid for the platform.