Tech

Twitter is now worth just $20 billion, half the price it was bought by Elon Musk

In an email sent to Twitter staff, Elon Musk reportedly said employees would receive stock based on a valuation of $20 billion, less than half of what he paid for the company. last year.

Elon musk takeover twitter
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Elon Musk values ​​Twitter at just $20 billion, according to an email seen by The Information and The New York Times. That’s far less than the $44 billion he paid to buy the company last fall, if Elon Musk’s memo notifying his employees of a new stock-based compensation package is to be believed.

The billionaire would have taken the opportunity to make some revelations. First, Elon Musk reportedly warned Twitter employees, whose numbers have dwindled considerably, that the website is still in a precarious financial situation. ” Twitter is being rapidly reshaped the memo reads, adding that the company had, at one point, been four months away from running out of cash.

Twitter was not far from bankruptcy

Despite a near miss, Elon Musk was optimistic about the future of the social media company. ” I see a clear, but difficult path to a valuation above $250 billion “, did he declare, suggesting that the shares awarded to employees today would be worth ten times as much a few years from now.

Like SpaceX, Twitter will periodically hold liquidity events so people can sell. Additionally, Musk reportedly wrote that he views Twitter as a “reverse startup” due to the whirlwind of “necessary” changes he made to the platform to save it from bankruptcy.

Advertising accounted for 91% of Twitter’s revenue in the second quarter of 2022, the latest period for which this data is available. Since Twitter is no longer a publicly traded company, Musk is no longer required to publish his financial data. We imagine that advertising revenues have dropped considerably, since many advertisers have already jumped ship. It remains to be seen whether the new Twitter Blue subscription, which allows you to be certified on the platform, whether or not it will suffice to bail out the coffers quickly.

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