Social media platform X, formerly Twitter under Elon Musk’s ownership, has encountered substantial turbulence since his acquisition, marked by a drastic 71% decline in its value, as reported by Fidelity Mutual Fund. Fidelity, holding a stake in X Holdings, indicated a staggering 71.5% reduction in share value since Musk’s purchase, a revelation disclosed through information available until November 2023, as per The Guardian.
Transition and Rebranding: Platform X Emerges
Musk’s takeover of Twitter for $44 billion in October 2022 led to the platform’s rebranding as Platform X by July 2023, estimated by Fidelity to be worth approximately $12.5 billion. However, the platform suffered a 15% drop in monthly users within the first year post-acquisition, primarily due to mounting concerns regarding hate speech proliferation.
Challenges and Controversies Under Musk’s Stewardship
Under Musk’s stewardship, Platform X underwent drastic changes, witnessing a significant reduction in staff by at least 50% and a scaling back of moderation efforts. The platform faced scrutiny from the European Union after it was revealed to have the highest percentage of misinformation posts among major social networks, prompting a warning to Musk in September.
Impact and Fallout: Musk’s Interventions and Company Response
Elon Musk, recognized as the world’s wealthiest individual with a net worth of $251 billion, stated his acquisition of Twitter was aimed at “helping humanity.” However, controversies ensued as Musk reinstated access to previously banned figures like former President Donald Trump and right-wing conspiracy theorist Alex Jones. The fallout from Musk’s ownership extended further as major companies withdrew their advertising following Musk’s endorsement of an anti-Semitic conspiracy theory. Musk’s response, instructing companies to “go to hell” during a New York event, compounded the platform’s challenges, notes NIX Solutions.
The tumultuous events post-Musk’s acquisition have underscored the complex interplay between ownership, controversies, and the impact on Platform X’s value and user base.