Elon Musk values Twitter at around $20 billion (only) and Twitter Blue is still a long way from really tipping the scales.
According to an email received by The Information and The New York Times, Elon Musk values Twitter at about $20 billion. The head of the company shared a valuation that is sharply short of the $44 billion he shelled out to buy the company last fall in a memo sent to Twitter employees over the weekend announcing a new stock compensation program. The billionaire seems to have warned the entire payroll, which has also shrunk badly in a short time, that the company’s financial position is very precarious. “Twitter is rebuilding very quickly,” he wrote, adding that at one point, the company had only four months of cash at its disposal.
Elon Musk values Twitter at around $20 billion (only)
According to Platformer’s Zoe Schiffer, Elon Musk also told employees he sees an “obvious but difficult path”to a $250 billion valuation, a highly hypothetical situation that would increase the stock’s value tenfold. Elon Musk said that Twitter will allow its employees to sell shares every six months, just like SpaceX. According to the billionaire, this program will give employees the opportunity to protect themselves from the “price chaos”caused by equity in a public company.
And Twitter Blue is still a long way from really tipping the scales.
To put Elon Musk’s valuation in context, at $20 billion, Twitter would be worth more than Snap, the creator of Snapchat, a company that has more than 140 million daily active users. It should also be noted that this assessment reflects the difficulties Twitter has faced since the decisions of its new boss. In early 2023, daily revenue was down 40% year-over-year after more than 500 of its largest ad partners suspended spending on the platform. Many of these companies have fled the ship following Twitter Blue’s chaotic relaunch, allowing many trolls to abuse the service to impersonate brands.
The increase in remuneration will be based on shares in X Corp. Current grants are based on an estimate of $20 billion. Musk says he sees a “clear but difficult path”to the $250 billion valuation, which means current grants could increase 10x. 3/
— Zoe Schiffer (@ZoeSchiffer) March 25, 2023