According to an email obtained by The Information and The New York Times, Elon Musk values Twitter at around $20 billion.
Musk revealed the valuation, which is a dramatic decrease from the $44 billion he paid for the business last year, in a note to Twitter staff on Friday proposing a new stock incentive programme.
The billionaire reportedly told Twitter’s considerably reduced personnel that the business was still in financial jeopardy. “Twitter is being remade swiftly,” he said, adding that the firm was four months away from running out of cash at one time.
According to Platformer’s Zo Schiffer, Musk also told staff that a $250 billion value is an “obvious but tough road,” a hypothetical result that would make the company’s existing stock grants worth ten times as much in the future.
Musk stated that Twitter would allow employees to sell stock every six months, similar to SpaceX’s strategy. The initiative, according to Musk, would provide employees with “liquid shares” while sheltering them from the “price chaos” that comes with equity in a publicly traded corporation.
Because Twitter was previously about 4 months away from running out of money. Now, he says, the financial incentives of employees should align with the company. 2/
— Zoë Schiffer (@ZoeSchiffer) March 25, 2023
To put Musk’s valuation in context, Twitter would be worth more than Snapchat developer Snap, which has over 140 million more daily active users, at $20 billion.
Let us mention that the figure most likely reflects the problems Twitter has had as a result of Musk’s decisions.
The company’s daily revenue was reportedly down 40% from a year ago at the start of 2023 after more than 500 of its main advertising partners suspended spending on the platform.
Several of those businesses fled after the company’s bungled introduction of Twitter Blue, which saw verified trolls use the service to impersonate brands.
According to recent The Information reporting, there were only roughly 180,000 Twitter Blue customers in the US at the beginning of February, implying that the service is nothing near making up for the financial decline that Twitter has endured since Musk’s acquisition.