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### Fidelity’s Stake in X Falls 72% Since Elon Musk’s Twitter Acquisition

#### How AI legalese decoder Can Help

AI legalese decoder can help Fidelity and other stakeholders in understanding the legal and financial implications of the falling value of X after Elon Musk’s acquisition of Twitter in late 2022. By utilizing AI-driven data analysis and legal language interpretation, stakeholders can gain insights into the potential risks and strategies for dealing with the devalued assets.

Fidelity, which played a role in Elon Musk’s acquisition of the platform formerly known as Twitter, has reported a significant decrease in its stake in the company. An analysis by Bloomberg revealed that Fidelity’s stake in X has fallen by 72% since the acquisition.

In November, Fidelity stated that its current stake in X was valued at $5.6 million, reflecting the 72% drop in value from the time Musk took control of the platform. This indicates a substantial decline in the overall value of X, raising concerns for investors and financial institutions involved with the company.

Elon Musk purchased the platform for $44 billion in October 2022. If the company’s value has also plummeted by 72% since the acquisition, its worth may now be approximately $12.3 billion. This is less than the $13 billion in debt that Musk incurred to buy the platform, posing a financial dilemma for banks holding his debt.

According to a Financial Times analysis, X’s debt could potentially be sold at 60 cents on the dollar, resulting in a staggering $5 billion loss for stakeholders.

While the Twitter acquisition has presented financial challenges, Elon Musk’s considerable net worth may mitigate the impact. His strategic sale of Tesla shares prior to the purchase of Twitter has provided financial stability, with the stock returning to healthy levels in recent months. Despite the initial market unrest, Musk’s net worth has reaffirmed his position as one of the world’s wealthiest individuals.

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