In a recent turn of events, Elon Musk’s social media venture, X, has faced yet another blow as Fidelity, a key player in its financial landscape, slashed the value of its holdings by an additional 11%, according to a report by Axios. This move comes on the heels of a series of setbacks for X, beginning with Musk’s high-profile acquisition of Twitter in late October 2022.
The aftermath of this takeover saw a whirlwind of changes, from widespread layoffs and international office closures to a complete overhaul of the platform’s moderation policies and verification system. The consequences were significant, as advertisers were deterred, leading to a stark drop in 2023’s projected ad sales revenue to $2.5 billion— a far cry from the previous quarterly average of $1 billion, as reported by Bloomberg News. Musk’s unapologetic stance on controversial issues further intensified the challenges, with his public statements drawing criticism, particularly regarding an endorsement of an antisemitic post in November.
This incident prompted Musk to tell advertisers who abandoned X to “f——” themselves. The controversy deepened as he agreed with a post asserting that Jewish people harbored a “dialectical hatred” of White people, a sentiment that not only triggered backlash from the White House but also led prominent corporate partners like Walt Disney Co. and Apple Inc. to distance themselves from the platform. The Fidelity writedown underscores the ongoing struggles of X in the face of both financial and reputational challenges.
