Fidelity slashes Twitter value by 56%
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.