This is how much value X has lost since the Musk takeover | Life & Knowledge

Elon Musk is in trouble: The short message service he took over,

X loses millions – what’s behind it?

According to current estimates from the US financial group Fidelity, Platform 8.4 billion euros). This dramatic downgrade, based on data as of July 31, 2024, shows that the company has suffered a 78.7 percent loss in value since the acquisition – a veritable crash!

Particularly noteworthy: As recently as May 2023, Fidelity estimated the value of X at $15 billion. But in the following 14 months, the value fell by a further 37.3 percent, further increasing the pressure on Musk and his leadership.

Advertisers are running away – Musk is under pressure

A key reason for the crash is the massive loss of advertising customers, which began shortly after Musk joined. This exodus, driven primarily by structural changes such as job cuts and platform policy adjustments, has significantly impacted X's advertising revenue. Many companies lost trust in the platform, which was reflected in declining advertising revenue.

X in the dock in Brazil

As if the financial pressure wasn't already great enough, Musk also has legal problems on his hands. X has been blocked in Brazil since the end of August 2024. Reason: A hefty fine of 4.65 million US dollars (around 4.16 million euros), which the company has not yet paid. The background is the failure to name a legal representative, as required by the court. In addition, X is accused of not having done enough to prevent the spread of misinformation and harmful content on the platform.

With this mix of financial losses, loss of advertising customers and legal hurdles, Musk faces a huge challenge – whether he can get X back on track remains to be seen.

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