Elon Musk values Twitter at $20 billion, less than half of his purchase price
The Tesla founder paid $44 billion for the platform in October
Elon Musk told employees on March 25 that the company is now valued at $20 billion, according to a senior reporter at The Verge.
That’s less than half of the $44 billion he paid for the social networking platform in October 2022.
The Verge’s Zoe Schiffer tweeted on Saturday, “Musk sent Twitter employees an email about the state of Twitter 2.0. He acknowledged that the company has been through a period of radical change, but said the changes were necessary… Because Twitter was previously about 4 months away from running out of money.
Schiffer continued, “Comp increases will be based on X Corp stock. Current grant is based on a $20 billion valuation. Musk says he sees a ‘clear but difficult path’ to $250 billion valuation, which will mean current grants could be multiplied tenfold. Like SpaceX, X Corp (aka Twitter) will do periodic liquidity events so people can sell. Musk says Twitter is on the way to a reverse startup.”
With the Musk-mandated return of several previously banned users, an increase in anti-Semitic and other hate speech, broken features and a disastrous blue check rollout that cost Eli Lilly millions, the platform has bled advertisers. Many have left the platform for good, even though ad revenue was unexpectedly up for 2022’s fourth quarter.
We’ve reached out to Twitter’s press department for comment, except they no longer have one. On March 19 Musk tweeted that any requests to press@twitter.com will automatically respond with the poop emoji.
