Fidelity Sells 5.6% Stake in X... "Company Value Plummets 73% After Musk's Acquisition"

Expansion of Owner Risk Leads to Advertiser Departure

Global asset management firm Fidelity sold nearly 6% of its stake in social networking service X (formerly Twitter), owned by Elon Musk, last month.

According to the monthly fund holdings report released by Fidelity on the 31st (local time), the value of the X shares held by the firm's Blue Chip Growth Fund was $5.28 million (approximately 7 billion KRW) as of the 29th of last month, down from $5.6 million (approximately 7.5 billion KRW) a month earlier.

The value of the X shares held by the Blue Chip Growth Fund has decreased by 73% since Musk acquired X. Bloomberg reported that since Fidelity's stake in X had not changed significantly during this period, the decline is estimated to reflect a corresponding drop in X's corporate value. X was delisted immediately after Musk's acquisition.

Previously, Fidelity participated as a major investor when Musk acquired X at the end of October 2022. Following Musk's acquisition, X faced 'owner risk' controversies such as large-scale layoffs and inappropriate behavior, leading advertisers to withdraw from X one after another. Last year, X's advertising revenue was reported to be $2.5 billion (approximately 3.37 trillion KRW), falling short of the target of $3 billion (approximately 4 trillion KRW).

This content was produced with the assistance of AI translation services.