Twitter, which was valued at USD 44 billion when Elon Musk bought it, has seen its valuation plummet dramatically.
What happened to Twitter’s valuation?
Elon Musk has valued Twitter at roughly USD 20 billion, according to an email obtained by The Information and The New York Times. On Friday, a note was delivered to all Twitter workers informing them of a new stock incentive scheme.
Musk cautioned in the email that the social media company was in a fragile financial condition and that the firm was only four months away from running out of funds at one point.
In addition, Musk also said that there is a “clear but challenging road” to a $250 billion value, which would make the present stock awards 10 times as valuable in the future.
The strategy would allow the platform’s employees to sell shares every six months, giving them “liquid stock” but sheltering them from the “price turmoil” that comes with ownership at a publicly listed firm, according to Musk.
The platform would be worth more than Snap, which has almost 140 million more daily active users, at $20 billion. The number, however, most likely represents the problems Twitter has had as a result of Musk’s choices.
At the start of 2023, the company’s daily revenue was allegedly down 40% from the previous year, and more than 500 of its biggest advertising partners had suspended spending on the site.
Several of these firms left after the company’s disastrous launching of Twitter Blue, which saw verified trolls exploit the service to mimic brands.
With just about 180,000 Blue customers in the United States at the beginning of February, the service appears to be nowhere near making up for the financial decline that the social media company has endured since Musk’s takeover.
Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later.
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