Elon Musk’s social media venture, X, is currently assessed at approximately $12.5 billion, according to a recent evaluation conducted by mutual fund Fidelity. Notably, this valuation represents a significant decline of 71.5 percent since Musk’s acquisition of the platform in October 2002 when he, along with a consortium of investors, paid a substantial $44 billion for what was then known as Twitter. Fidelity, an equity holder in X, conducted the analysis through November 2023, encompassing the period during which the platform experienced notable setbacks, primarily linked to an advertiser exodus triggered by Musk’s controversial actions.
In mid-November, Musk’s endorsement of an antisemitic and white supremacist conspiracy theory on X led to severe repercussions. A subsequent report by Media Matters for America exposed major brands’ ads appearing alongside pro-Nazi content on the platform, prompting companies like Apple and Disney to suspend advertising. The fallout contributed to a significant portion of the losses incurred by X, with Axios reporting a 10.7 percent decline in November alone.
The final weeks of 2023 proved challenging for X, with an estimated $75 million in advertising losses due to the boycott. Musk’s confrontational stance, exemplified by telling advertisers to “go [themselves]” during an interview, further strained the platform’s standing. Musk continued his provocations in December, taunting Disney CEO Bob Iger on X for Disney’s continued advertising on other platforms.
Fidelity’s assessment of X’s value has consistently dwindled over the past year. In May 2023, the company valued X at approximately $15 billion. The current trajectory suggests that unless Musk implements significant changes, the decline in X’s valuation may persist. The unfolding developments in 2024 are poised to be pivotal for the future trajectory of X.