Twitter is estimated to be worth $20 billion, less than Elon Musk’s $44 billion purchase price.
Elon Musk bought Twitter around five months ago for $44 billion, with the idea of an advantage to the future civilization.
He wanted to have a common digital town square where an extensive range of people with different beliefs can debate about different topics healthily. But since then, the company has only been going into a loss.
Elon Musk still optimistic about the future
Elon Musk, in a note to staff, said that he is still optimistic about the future of Twitter. He said that even if the road is difficult, he still sees a clear path to a >$250 billion valuation, meaning that the stock will be worth 10 times more than the stocks granted now, as per the wall street journal.
He also stated that since Twitter is being reshaped rapidly and many new changes are being brought, it can also be considered an inverse start-up. He also included that the company needed radical changes if it did not want to go bankrupt.
Image Source: businesstoday.in
What the new valuation suggests
Since many big investors and advertisers have withdrawn their spending, Twitter’s new valuation figures were expected to happen. Even Elon Musk stated that the platform was on the verge of bankruptcy after facing many financial crises.
He also stated that he saw a $1.5 billion drop per year of revenue, leaving him with only 4 months’ money to run the company. Elon Musk stated that it has become an emergency for them, but he thinks that the company would stand back up, since their advertisers are returning to the company. He hopes the company will break even in the year’s second quarter.
Also Read: Texan Boy, Noel Rodriguez-Alvarez, Is Missing at the Age of 6
Employees at Twitter
According to reports by wall street journal, the billionaire has offered a stock grant of approximately $20 billion worth to his employees at Twitter. It is still foggy on the details, though, who will receive the equity grants, and the value of the assigned stock is yet to be revealed.
According to the employees, these stock grants can be vested several years later and allocated to employees after six months.
In 2021, Twitter spent almost $630 million on stock-based compensation on nearly 7500 employees. But now there are around 2,300 active employees only, since most of the staff was let go. In the latest layoff, the company laid off about 200 employees, about 10% of its workforce.
