Elon Musk values Twitter at about $20 billion, according to an email seen by The Information and The New York Times. Musk shared the valuation, a significant drop from the $44 billion he paid to buy the company last fall, in a memo he sent to Twitter employees on Friday announcing a new stock compensation program. The billionaire reportedly warned Twitter’s significantly diminished workforce that the website was still in a precarious financial position. “Twitter is being reshaped rapidly,” he wrote, adding the company had, at one point, been four months away from running out of cash.
Comp increases will be based on X Corp stock. Current grants are based on a $20b valuation. Musk says he sees a “clear but difficult path” to $250 billion valuation which would mean current grants could 10x. 3/
— Zoë Schiffer (@ZoeSchiffer) March 25, 2023
According to Platformer’s Zoë Schiffer, Musk additionally told employees he sees a “clear but difficult path” to a $250 billion valuation, a hypothetical outcome that would make the company’s current stock grants worth 10 times as much in the future. Musk said Twitter would allow staff to sell stock every six months, a policy similar to one in place at SpaceX. According to Musk, the program would give employees “liquid stock” while shielding them from the “price chaos” that comes with equity at a publicly traded company.
To put Musk’s valuation in context, at $20 billion, Twitter would be worth more than Snapchat creator Snap, a company with nearly 140 million more daily active users. It’s also worth noting that the estimate likely reflects the difficulties Twitter has faced as a direct result of Musk’s decisions. At the start of 2023, the company’s daily revenue was reportedly down 40 percent from a year ago after more than 500 of its top advertising partners had paused spending on the platform. Many of those companies left following the firm’s messy relaunch of Twitter Blue, which saw verified trolls abuse the service to impersonate brands. Based on recent reporting from The Information, there were only about 180,000 Twitter Blue subscribers in the US at the beginning of February, suggesting the service is nowhere close to making up for the financial downturn Twitter has experienced since Musk’s takeover.
This article originally appeared on Engadget at https://ift.tt/kqDRXbFfrom Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics https://ift.tt/kqDRXbF
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