(CTN Information) – After paying $44 billion for the social media community 5 months in the past, Elon Musk reportedly values Twitter at $20 billion, or lower than half that quantity. The estimate was made public in an inner communication considered by American information organizations.
Workers obtained shares of X Holdings, the father or mother firm of Twitter that Elon Musk purchased in late October, and the e-mail mentioned the corporate’s new inventory compensation program.
Twitter’s Worth Reduce in Half, In keeping with Elon Musk’s E mail
The platform is valued at $20 billion underneath the compensation plan, which is greater than the market capitalizations of publicly traded corporations equivalent to Snap ($18.2 billion), the father or mother firm of Snapchat, and Pinterest ($18.7 billion), a social community and artistic web site.
When the AFP communications group emailed Twitter, they obtained a feces emoji as a robotic reply.
Musk particulars the steep decline in Twitter’s valuation in an inner e-mail. He claims that the platform’s monetary scenario turned so dire that it was nearly bancrupt.
Musk tweeted on Saturday that Twitter was anticipated to lose $3 billion this yr.
He stated the corporate had “solely 4 months of cash” since annual income had dropped $1.5 billion and debt service was costing the identical quantity.
Elon Musk Trims Twitter’s Payroll from 7,500 to Fewer Than 2,000 Workers
A easy “Extraordinarily dire scenario,” Elon Musk, Twitter’s principal shareholder, stated.
It seems like we are going to break even” within the second quarter of the yr, he added, referring to the return of advertisers who had left the positioning after the erratic billionaire purchased it.
Beneath Musk’s management, the corporate’s workforce has been drastically lowered from 7,500 to fewer than 2,000.
With out offering a time-frame, he wrote in an e-mail that he noticed a “clear however troublesome path” to a valuation of $250 billion.
Elon Musk, who additionally runs Tesla Inc. and aerospace agency SpaceX, introduced that Twitter workers may promote shares each six months.
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