Elon Musk's X Valuation Down to $19 Billion
Elon Musk”s X, formerly known as Twitter, has disclosed that its valuation has fallen from $40 billion, the price at which Musk took over a year ago, to $19 billion. This is a 55% drop. The company”s revelation came while granting stock grants to employees, according to internal documents seen by The New York Times.
The new valuation acknowledges Musk”s claim that he bought the company at a higher valuation, as he paid $54.20 per share to buy Twitter just over a year ago. In an email to workers in March, Musk described the company as “an inverse startup” worth only $20 billion.
Twitter has offered stock grants at $45 a share in the form of restricted stock units (RSUs), which employees can earn over time. RSUs are shares of stock that employees are granted, but do not actually receive, until they have met certain conditions, such as staying with the company for a certain number of years or meeting performance targets.
The company has also announced that it will pay employees in cash for any outstanding shares that were granted to them under previous management. The amount of payment will be $54.20.
In this scenario, it is clear that the company has not reduced the price of the share in line with the fall in valuation. However, the reason for not reducing the price is not yet known. The company has not responded to inquiries regarding this.
Since Elon Musk acquired Twitter, he has made significant changes to the company and its social media platform. Over 80% of the company”s 7,500 employees have either resigned or been laid off. Musk has also altered the service”s verification process and content moderation rules.
The company”s primary source of revenue, advertising, decreased by almost 60% in the United States this summer. Additionally, Musk loaded the company with billions of dollars in debt to finance the acquisition.
However, Musk remains optimistic about the company, envisioning it as an all-purpose app with a bunch of new features such as dating services and job recruiting.
