In an email addressed to the company’s staff on Friday, Elon Musk said that Twitter is now only worth about $20 billion, a considerable decrease from the $44 billion he paid to purchase the social network in October.
The email was sent to staff members to inform them of a new stock compensation programme. In it, Mr. Musk warned staff that Twitter’s financial situation remained shaky and that the company could be just four months away from going bankrupt.
He claimed that the business needs to undergo “radical changes,” such as cost-cutting and mass layoffs, in order to stay afloat and run more efficiently.
“Twitter is being reshaped rapidly,” according to Mr. Musk, who also suggested that the company may be equated to “an inverse start-up.”
According to reports, the value of Twitter has decreased as a result of significant changes implemented by Mr. Musk. And, since he privatized Twitter in October, the company is no longer required to be transparent about its financial operations.
Yet, the billionaire has stated publicly that Twitter was in danger of going bankrupt and that the company lost money when advertisers left the platform as a result of his takeover.
With a worth of $20 billion, Twitter is slightly more valuable than Snap, the parent company of Snapchat, which has recently struggled with a decline in advertising and forecasted revenue declines.
The Information first revealed the new worth of the corporation.
Twitter employees will get stock in X Corporation, the holding firm Mr. Musk created to purchase the company, according to his email announcing the new equity incentive programme.
The $20 billion valuation will apply to the rewards. In the email, Mr. Musk also expressed his opinion that Twitter may one day be worth $250 billion.
Mr. Musk noted that Twitter intends to follow the same procedure as his privately held rocket business SpaceX and permit employees to sell the stock every six months.
Employees would have access to “liquid stock, but without the stock price chaos and litigation burdens of a public company,” according to Mr. Musk’s mail.
Published by HOLR Magazine