One of the few companies that helped Elon Musk finance his Twitter deal – Fidelity, slashed its stake in Twitter by over half last month!
As per a monthly disclosure, the company stated having only $8.63 million worth of stake in Twitter as of November 2022 – down from the previous month’s $19.66 million valuation. While the harsh macroeconomics is playing its part, Twitter’s internal management decisions are the major ones to be blamed, say, analysts.
Partially Backing Off From Twitter
The ongoing crisis at Twitter Inc. is quite understandable. Though with pure intentions, the new boss Elon Musk is running the firm like a madman – with quick decisions on major elements of the company taken erroneously, which results in unbearable actions.
From reinstating controversial accounts to dismissing some journalists, revamping Twitter Blue to offer badges for everyone to facing ultimate impersonation attacks – the new Twitter has seen everything. This led some of the investors’ to lose hope and withdraw their stake in the company, where Fidelity is one among them!
As per monthly disclosure, Fidelity’s Blue Chip Growth Fund stated having an $8.63 million worth stake in Twitter as of November – which is down by 56% ($19.66 million) from the month of October. Fidelity is one of the few companies that trusted Elon Musk and financed his deal of Twitter acquisition.
And now, backing off partially is a bad sign for the social media platform. While the ongoing macroeconomics can be partly blamed, it’s mostly Twitter’s internal management decisions that are pushing everyone away. Cutting off employees in crucial segments like PR, content moderation, and human rights-related issues, and improper changes made to the platform that’s triggering more issues – are causing more trouble.
All above this, the major advertisers leaving the platform had thumped Twitter even down – right when the company’s interest payments touched a $1 billion mark on the $13 billion debt. All this sum up how unstable Twitter is, promoting companies like Fidelity to dissolve their stake for good.