Fidelity slashes the value of its Twitter stake by over half

The value of Fidelity's stake in the social networking site has been slashed by over 50%. There is an exodus of advertisers from the network due to chaotic management decisions.

As of November, Fidelity's Blue Chip Growth Fund stake in Twitter was worth around $8.63 million. As of the end of October, that was $19.67 million.

The economic trends are likely to be blamed. In July, Stripe took a 28% internal valuation cut.

The policies that were put in place after Musk have not helped matters.

On Wednesday, the network became less stable at a technical level after Musk made significant server architecture changes. The group responsible for weighing in on human rights-related issues such as suicide prevention was dissolved by the layoffs of employees. The company banned accounts belonging to prominent journalists, and then quickly restored them.

Fidelity seems to rely a lot on public market performance when it comes to valuations. There is a chance that the firm doesn't have any information about the financial performance of the company.

As the company nears $1 billion in interest payments due on $13 billion in debt, there are cuts to the staff. According to a November report from Media Matters for America, half of the top 100 advertisers who spent $750 million on ads on the site appear to have stopped. The goal of the plan is to make it a bigger profit driver. Tracking data shows it has been slow to take off.

The New York Times reported that some employees at the company brought their own toilet paper to work after the company stopped paying rent.

According to a Times report, over the past few weeks, Musk has shut down a data center and put office items up for auction in a bid to save hundreds of millions of dollars.

According to The Wall Street Journal, Musk's team has reached out to investors for new investment at the same price as the original deal.

Users voted overwhelmingly in favor of Musk leaving the company after he put up a poll asking if he should step down. Musk said he would resign as CEO as soon as he found someone foolish enough to take the job.