In October, the billionaire purchased the social media company for $44 billion and became a private entity.
According to an email sent by Elon Musk to Twitter employees on Friday, he believes that the social media company is currently valued at around $20 billion, a significant decrease from the $44 billion he paid to purchase it in October. The email, which The New York Times viewed, was sent to inform employees of a new stock compensation program. In the message, Musk cautioned that Twitter's financial situation was still precarious and that it had come dangerously close to running out of money at one point. Musk emphasized the need for "radical changes" at the company to prevent bankruptcy and streamline operations, including mass layoffs and cost-cutting measures. He described Twitter as an "inverse start-up" and noted that it was rapidly being reshaped. Since Musk's takeover and significant company restructuring, Twitter's value has declined. Although the social media giant is no longer required to disclose its finances publicly, Musk has publicly stated that its revenue has decreased as advertisers have abandoned the platform.
With a valuation of approximately $20 billion, Twitter is valued slightly higher than Snap, the parent company of Snapchat, which has recently experienced a slump in advertising and predicted a decrease in revenue. Snap currently has a market capitalization of roughly $18 billion and 375 million daily active users, compared to Twitter's 237.8 million in its last public disclosure before going private.
Despite being contacted for comment, Mr. Musk did not respond, and Twitter's communications department responded to an email with a poop emoji. The Information previously reported the social media company's new valuation.
Elon Musk's email regarding the new stock compensation program at Twitter states that employees will receive stock in X Corporation, the holding company he used to purchase the social media platform. These awards will be given based on the $20 billion valuation. Furthermore, Musk expressed his belief that Twitter could eventually reach a valuation of $250 billion.
Musk also mentioned that Twitter intends to permit its employees to sell the stock every six months, a practice similar to that of his privately held rocket company, SpaceX. According to Musk, these private stock sales will allow employees to have liquid stock without the stock price chaos and lawsuit burdens that come with a public company.
According to an email sent by Elon Musk to Twitter employees on Friday, he believes that the social media company is currently valued at around $20 billion, a significant decrease from the $44 billion he paid to purchase it in October. The email, which The New York Times viewed, was sent to inform employees of a new stock compensation program. In the message, Musk cautioned that Twitter's financial situation was still precarious and that it had come dangerously close to running out of money at one point. Musk emphasized the need for "radical changes" at the company to prevent bankruptcy and streamline operations, including mass layoffs and cost-cutting measures. He described Twitter as an "inverse start-up" and noted that it was rapidly being reshaped. Since Musk's takeover and significant company restructuring, Twitter's value has declined. Although the social media giant is no longer required to disclose its finances publicly, Musk has publicly stated that its revenue has decreased as advertisers have abandoned the platform.
With a valuation of approximately $20 billion, Twitter is valued slightly higher than Snap, the parent company of Snapchat, which has recently experienced a slump in advertising and predicted a decrease in revenue. Snap currently has a market capitalization of roughly $18 billion and 375 million daily active users, compared to Twitter's 237.8 million in its last public disclosure before going private.
Despite being contacted for comment, Mr. Musk did not respond, and Twitter's communications department responded to an email with a poop emoji. The Information previously reported the social media company's new valuation.
Elon Musk's email regarding the new stock compensation program at Twitter states that employees will receive stock in X Corporation, the holding company he used to purchase the social media platform. These awards will be given based on the $20 billion valuation. Furthermore, Musk expressed his belief that Twitter could eventually reach a valuation of $250 billion.
Musk also mentioned that Twitter intends to permit its employees to sell the stock every six months, a practice similar to that of his privately held rocket company, SpaceX. According to Musk, these private stock sales will allow employees to have liquid stock without the stock price chaos and lawsuit burdens that come with a public company.