X's Value Drops 71%: Fidelity Links Decline To Elon Musk's Takeover And Advertiser Tensions
Portfolio Pulse from Benzinga Neuro
Fidelity has reported a 71% decrease in the value of X, previously known as Twitter, since Elon Musk's acquisition in October 2022. The value drop is linked to Musk's controversial actions and subsequent advertiser boycotts, including major companies like Walt Disney Co and IBM. Fidelity, holding equity in X, has marked down its stake to around $15 billion, a third of Musk's purchase price. Advertiser tensions heightened after Musk endorsed an antisemitic post, leading to a pause in campaigns from companies such as Disney and Warner Bros. Discovery Inc.
January 02, 2024 | 6:26 am
News sentiment analysis
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NEGATIVE IMPACT
Walt Disney Co pulled ads from X following Elon Musk's contentious post, contributing to X's value decline.
Disney's decision to pull ads from X after Musk's controversial post indicates a negative sentiment towards X, which could reflect poorly on Disney's commitment to corporate responsibility and potentially impact its public image.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
IBM also withdrew advertising from X in the wake of Musk's controversial actions, affecting X's valuation.
IBM's pullout from advertising on X post-Musk's controversial actions contributes to the negative perception of X and could have a minor reputational impact on IBM for taking a stand on social issues.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Warner Bros. Discovery paused advertising campaigns on X following Musk's endorsement of an antisemitic post, impacting X's revenue.
Warner Bros. Discovery's decision to pause advertising on X after Musk's antisemitic post endorsement contributes to the financial challenges faced by X, potentially affecting WBD's marketing strategies.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60