- Fidelity Investments recently revalued its Twitter shares up over 11% in December 2022, though still at a large discount to the purchase price when helping Elon Musk acquire Twitter.
- The exact metrics Fidelity uses to value private company shares are unknown, but the increase may reflect Twitter’s publicly traded competitors rising or speculation around equity in Musk’s new AI company.
- An ex-IRS contractor who leaked tax records of Trump and others was sentenced to 5 years in prison, as business leaders suggest AI advancements could help address global labor shortages despite concerns of displacing workers.
Fidelity Investments recently marked up the value of its shares in Twitter by over 11% in December 2022. This comes after the mutual fund giant helped Elon Musk acquire the social media platform for $44 billion in the fall.
Fidelity’s Valuation of Twitter
Fidelity still holds Twitter at around a 68% discount to its per-share purchase price last year. The exact metrics used by Fidelity to revalue private company shares are unknown. One possibility is that the increase reflects Twitter’s publicly traded competitors like Snap and Meta, which rose in December. Fidelity may also be accounting for speculation that existing Twitter investors could receive equity in Musk’s new AI company.
Other Key Developments
Progress Reported on Gaza Hostage Negotiations
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani said this week that officials from the U.S., Qatar, Egypt and Israel made headway on talks around securing the release of hostages held by Hamas in Gaza. The first phase of a potential deal could include a six-week ceasefire and prisoner exchanges if Hamas agrees to a negotiation framework.
Former IRS Contractor Who Leaked Trump’s Taxes Sentenced
The ex-IRS contractor who leaked the tax records of former President Donald Trump and other wealthy Americans was sentenced to five years in prison on Monday. The leaks offered a rare glimpse into the confidential IRS data of the ultra-wealthy and how little they pay in taxes relative to income.
How AI Could Help Address Global Labor Shortages
Business leaders have suggested AI-driven productivity gains could help limit economic pain from demographic shifts. As computers grow more capable of human jobs, it raises concerns about displacing workers. But AI advancements may also curb labor shortages in aging societies.