Updated Dec 30, 2022 - Economy

Fidelity slashes Twitter value by 56%

Illustration of a hashtag with a downward arrow.

Illustration: Shoshana Gordon/Axios

Fidelity slashed its carrying value of Twitter by 56% during the first month of Elon Musk's ownership, according to a new disclosure.

Driving the news: Fidelity was among the group of outside investors that helped Musk finance his $44 billion takeover of the social media site, by purchasing equity.

  • It holds the Twitter shares in several of its mutual funds, under the name "X Holdings I Inc."

By the numbers: Fidelity's Contrafund valued its Twitter shares at $53.47 million on Oct. 31, which was just days after Musk's deal closed. It then revalued the shares at around $23.46 million as of Nov. 30, representing a 56% decline.

  • Fidelity reports the same Twitter valuation cut in other mutual fund disclosures, including for its Blue Chip Growth Fund.

What to know: Fidelity is a Twitter shareholder, but doesn't necessarily have proprietary knowledge about its business performance. Instead, the revaluation may be based, at least in part, on broader tech equity declines.

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