According to Twitter boss Elon Musk, Twitter has lost significant value. However, he believes he can make up for it.
Twitter boss Elon Musk has admitted in an email to his employees that the microblogging service Twitter is now worth just $20 billion, about €18.59 billion, half of the original purchase price of 44 Billion dollars, as the New York Times writes. Musk bought Twitter in October 2022.
In the email in which Musk informed about a new stock compensation program, he made it clear how bad things were for Twitter. The company was four months before it ran out of money. Only the “radical changes” that were made, such as mass layoffs and significant cost reductions, could have avoided bankruptcy and saved the company.
However, the situation remains precarious. “Twitter is being transformed quickly,” Musk writes, according to the New York Times. Twitter must now be imagined as an inverted start-up. Musk aims to get the company back on its feet as soon as possible.
Goal: a value of 250 billion dollars
However, the changes Musk made to Twitter met with little approval. The company lost some advertisers and lost revenue following its acquisition by Musk and its announcement that it would less regulate the platform’s content. However, Musk is optimistic about the future of Twitter: he believes that the company could one day be worth $250 billion. However, Musk said nothing about exactly how this could be achieved.
The new stock-based compensation program for employees will see them receive stock through X Corporation, the holding company through which Musk made the purchase, according to the New York Times. The awards are under the $20 billion valuation. Employees can sell the shares after six months of ownership, according to Twitter’s plan. This would have already proven itself at Elon Musk’s space company SpaceX. This is intended to prevent private share sales from leading to price chaos.