Twitter is a social media platform that allows users to post and interact with short messages called “tweets.” It was created in 2006 and has since become a popular tool for sharing news, opinions, and other content in real-time. Tweets can include text, photos, videos, and links to other websites. Twitter also allows users to follow other accounts and receive updates on their tweets, making it a powerful tool for staying informed about current events and engaging with others on a global scale. The company, which was worth $44 billion at the time it was purchased by Elon Musk, has drastically dropped in valuation.
According to an email seen by The Information and The New York Times, Elon Musk has valued Twitter at around $20 billion. The memo was sent to Twitter employees on Friday to announce a new stock compensation program. In the memo, Musk warned that Twitter was in a precarious financial position and said the company had been only four months away from running out of cash at one point. Musk also stated that he sees a “clear but difficult path” to a $250 billion valuation, which would make the current stock grants worth ten times as much in the future. The policy will allow Twitter staff to sell stock every six months, which Musk claims will give employees “liquid stock” while shielding them from the “price chaos” that comes with equity at a publicly traded company.
At $20 billion, Twitter would be worth more than Snap, a company with nearly 140 million more daily active users. However, the estimate likely reflects the difficulties Twitter has faced due to Musk’s decisions. The company’s daily revenue was reportedly down 40% from a year ago at the start of 2023, and more than 500 of its top advertising partners had paused spending on the platform. The firm’s messy relaunch of Twitter Blue, which saw verified trolls abuse the service to impersonate brands, caused many of these companies to leave. With only around 180,000 Twitter Blue subscribers in the US at the beginning of February, it seems that the service is nowhere close to making up for the financial downturn Twitter has experienced since Musk’s takeover.
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(Via)
