Twitter Valuation Slashed to $8.8 Billion in 2025: Is It Really Worth Just a Third of Musk’s $44 Billion Buyout?
Discover why Fidelity’s recent markdown values Twitter, now X Holdings Corp., at only a third of Elon Musk’s $44 billion acquisition price and what this means for investors in 2025.
In 2024, a Fidelity investment fund has once again reduced the valuation of its stake in Twitter, which now operates under the name X Holdings Corp. This marks the third markdown, indicating that the social media giant is currently valued at roughly $8.8 billion — just about one-third of Elon Musk’s $44 billion purchase price.
Key Insights
- Fidelity has decreased its valuation of Twitter (X Corp.) significantly.
- The company’s worth is now estimated at around 33% of Musk’s original buyout price.
- This valuation adjustment slightly impacts Musk’s net worth but holds minimal significance for broader investors.
As of April 2024, only 0.16% of the Fidelity Blue Chip Growth Fund’s assets were invested in X Holdings. The fund initially valued its Twitter stake at $8.63 million in November but has since lowered that to $6.55 million. Because X Holdings remains a private company, Fidelity’s valuation is based on internal metrics that are not publicly disclosed.
Bloomberg reports that this reassessment implies Musk overpaid for Twitter, reducing his net worth by an estimated $850 million from $187 billion. Despite this, the impact on investors is minimal.
What Does This Mean for Investors in 2024?
For shareholders, the $54.20 per share payout Musk offered during the acquisition remains unchanged. The Fidelity Blue Chip Growth Fund’s exposure to X Holdings is negligible relative to its $32 billion portfolio. Major holdings include Apple (10.2%), Microsoft (9.5%), and Nvidia (7.4%), all of which showed positive returns in April, helping the fund increase by 0.5% during that period.
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