Fidelity cuts its stake in Twitter by more than half • TechCrunch

Fidelity was one of the outside investors that helped Elon Musk to fund his $44 billion Twitter acquisition. Fidelity has now reduced its stake in Twitter by 56%. The reinstatement of the account comes as Twitter navigates a number of challenges, most of them a result of messy management decisions — including the exodus of advertisers from the network.

According to Fidelity Contrafund’s first notice and monthly disclosure, Fidelity’s Blue Chip Growth Fund stake was worth $8.63 Million as of November. mentionedToday by Axios. This is down from $19.66million at the end October.

Macroeconomic trends are likely partly to blame. tape TakingIt reduced its internal rating by 28% in July. Instacart cut this week. It saidShe was rated 75% lower.

Twitter’s lackluster postMusk policies clearly didn’t help matters.

The network has been less stable in recent weeks, with Wednesday’s problems. outagesMusk made “big” changes in the back-end server architecture. Twitter recently laid off employees from its engineering and public policy department. solubilityThis group is responsible for evaluating content and issues relating to human rights, such as suicide prevention. Regulators were furious after the company was banned and then quickly restored the accounts. belonging For eminent journalists.

However, as Axios’ business editor Dan Primack pointed out in a tweet, Fidelity seems to be heavily dependent upon overall market performance in terms valuations. It is possible that the company does have no information about Twitter’s financial performance.

Twitter is not immune to cuts. Approach$1 billion in interest payments on $13 billion of debt, while revenue plummets. November report by Media Matters for America estimatedIt seems that half of the top 100 Twitter advertiser’s, who spent almost $750 million on Twitter ads in total this year, are not advertising on the site anymore. Twitter is working hard on its Twitter Blue Plan, which aims to make it a larger profit engine. But a third-party could be a good option. Data trackingIndicate that it took a while to take off.

The New York Times reports that some employees of Twitter are now bringing their own toilet papers to work after the company cut its cleaning services. mentionedTwitter has stopped paying rent in many of its offices, including its San Francisco headquarters.

According to the Times report, Musk tried to save $500 million in non labor costs over the past few months by closing a data centre and launching a sale, after which he put office items up for sale in an effort to recover lost costs.

Musk’s team also has ArriveInvestors looking for a new investment in Twitter at the same $44 Billion acquisition price dependingThe Wall Street Journal

Musk’s poll asking whether he should resign as chairman of the company was closed Dec. 19, after users voted in. resoundinglyMusk voted in favor of his departure. Musk replied several days later, stating that he would be leaving as CEO “as soon and as possible”. [he found] Someone foolish enough to take the job” and then “just run the software teams and servers.”