Twitter is apparently worth $20 billion to Elon Musk
According to an email obtained by The Information and The New York Times, Elon Musk places a $20 billion value on Twitter. In a statement he issued to Twitter staff on Friday, Musk revealed the valuation, which represents a considerable decrease from the $44 billion he spent to purchase the business last October. Musk also announced a new equity compensation programme. The billionaire reportedly informed Twitter’s drastically reduced personnel that the company’s financial situation was still fragile. Twitter was once four months away from running out of money, he said, adding that the firm was “being reshaped rapidly.”
In addition, Musk reportedly informed staff that he sees a “clear but difficult path” to a $250 billion valuation, a potential conclusion that would increase the value of the company’s present stock grants by ten times in the future, according to Platformer’s Zo Schiffer. According to Musk, Twitter will follow a similar procedure to SpaceX and permit employees to sell stock every six months. Providing employees with “liquid stock” while protecting them from the “price chaos” that comes with equity at a publicly traded firm, according to Musk, is the goal of the programme.
In order to put Musk’s valuation into perspective, Twitter would be worth more at $20 billion than Snap, the company that created Snapchat and has roughly 140 million more daily active users. It’s also important to note that the estimate probably accurately captures the challenges Twitter has encountered as a direct result of Musk’s actions. More than 500 of the company’s largest advertising partners reportedly stopped spending on the platform at the beginning of 2023, resulting in a 40 percent decline in daily revenue for the company. Following the company’s disastrous launching of Twitter Blue, which saw verified trolls exploit the service to pose as well-known brands, many of those businesses quit. According to The Information’s most recent reporting, there were just 180,000 Twitter Blue customers in the US at the beginning of February, indicating that the service is in no way close to making up for the financial decline that Twitter has seen since Musk took control of the company.