Elon Musk values Twitter at around $20 billion, says email seen by And . Musk shared the valuation, a significant drop from the he paid to buy the company , in a memo he sent to Twitter employees on Friday announcing a new stock-based compensation program. The billionaire reportedly warned Twitter’s drastically reduced workforce that the website was still in a precarious financial situation. “Twitter is rapidly reshaping,” he wrote, adding that the company had, at one point, been four months away from short of money.
The pay increases will be based on X Corp shares. Current subsidies are based on a $20 billion valuation. Musk says he sees a “clear but difficult path” to a $250 billion valuation, which would mean current subsidies could be increased 10 times.
— Zoe Schiffer (@ZoeSchiffer) March 25, 2023
, Musk also 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 awards worth 10 times more in the future. . Musk said Twitter would allow staff to sell stock every six months, a policy similar to that in place at SpaceX. According to Musk, the program would give employees “liquid inventory” while protecting them from the “price chaos” that accompanies equity in a publicly traded company.
To put Musk’s valuation into context, at $20 billion, Twitter would be worth more than Snapchat creator Snap, a company with nearly 140 million additional 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 would have been after more than 500 of its top advertising partners suspended spending on the platform. Many of these companies left as a result of the company , which has seen verified trolls abuse the service to impersonate brands. Based on recent reports from there were only around 180,000 Twitter Blue subscribers in the US at the start of February, suggesting the service is far from offsetting the financial downturn Twitter has experienced since Musk’s takeover.
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