When Elon Musk first set his sights on acquiring the social media platform formerly known as Twitter, it seemed like an audacious move from the tech billionaire. At a staggering $44 billion (€41.8 billion), Musk’s purchase made headlines globally, sparking debates about how the world’s richest man might change the way we interact online.
However, reports now suggest that X, as the platform is now called, has lost over 70 per cent of its value since the acquisition, a decline that has left many investors uneasy and users questioning its future.
Elon Musk’s ambitious Twitter takeover
Musk’s acquisition of Twitter in late 2022 was nothing short of dramatic. After months of back-and-forth negotiations, lawsuits and public comments that kept the platform in the spotlight, he finally sealed the deal. His vision for Twitter – or X, as it was rebranded – was to transform it into an “everything app” where users could not only post updates but also handle financial transactions, shop, and more. Shortly after the takeover, Musk tweeted, “The bird is freed,” referring to the company’s former logo.
X’s dramatic decline in value
X’s financial health has reportedly taken a significant hit since Musk’s takeover. According to a report by Fortune, the platform has seen its value drop drastically, with estimates suggesting it has lost between 70-75 per cent of its worth. Fidelity Investments, which had invested in the company, marked down its investment value, leading to concerns about the platform’s long-term viability.
Although exact figures remain unclear, Tech.co highlights that Musk’s leadership and decisions have been key factors in this decline. The introduction of paid verification (now known as X Blue), mass layoffs, and the platform’s reduced advertising revenue have all played a role. Notably, Euronews stated that the platform has seen its valuation plummet from $44 billion (€41.8 billion) to just around $15 billion (€14.25 billion).
Since Musk’s takeover, several changes have been implemented, some of which have been met with enthusiasm, while others have left users perplexed. One of the most talked-about shifts has been the rebranding of Twitter to X. Musk has also introduced new features, such as paid subscriptions for verified accounts, which stirred debates about the platform’s accessibility and inclusivity.
Additionally, Musk made the controversial decision to reduce the workforce by nearly 50 per cent, drastically cutting costs.
Advertising revenue, which once served as Twitter’s financial backbone, also experienced a sharp drop. This decline, partly due to advertisers’ concerns over content moderation and brand safety, has only added to the platform’s financial woes. In an attempt to make X more profitable, Musk introduced various revenue streams, including ad revenue sharing for top creators, but the success of these initiatives has yet to be seen.
The platform, once a go-to for breaking news, lively discussions, and staying connected with loved ones back home, now feels like it’s in a state of instability.
Only time will tell whether Elon Musk’s vision of an “everything app” will come to fruition, or if X’s current struggles will mark the beginning of its decline. Either way, the story of Musk’s X takeover serves as a reminder that even the boldest ventures in tech are not without risks.
