A senior reporter at The Verge says that Elon Musk told employees on March 25 that the company is now worth $20 billion.
That’s less than half of what he paid for the social networking platform in October 2022, which was $44 billion.
Zoe Schiffer of The Verge posted on Twitter on Saturday, “Musk sent an email to Twitter employees about the state of Twitter 2.0. He admitted that the company had gone through a time of big changes, but he said that the changes were necessary… Because Twitter was about to run out of money about four months ago.”
Schiffer went on to say, “Increases in compensation will be based on X Corp stock. The grants we give now are based on a $20 billion estimate. Musk says that he sees a “clear but hard path” to a valuation of $250 billion, which would mean that current grants could be multiplied by ten. Like SpaceX, X Corp, also known as Twitter, will hold “liquidity events” from time to time so that people can sell. Musk says that Twitter is heading toward becoming a “inverse startup.”
With Musk ordering the return of some users who had been banned, an increase in antisemitic and other hate speech, broken features, and a disastrous rollout of blue check that cost Eli Lilly millions, the platform has lost a lot of advertisers. Even though ad revenue was up for the fourth quarter of 2022, many people have left the platform for good.
We would ask Twitter’s press office for a comment, but they no longer have one. On March 19, Musk tweeted that the poop emoji would automatically reply to any questions sent to press@twitter.com.
Because Twitter was previously about 4 months away from running out of money. Now, he says, the financial incentives of employees should align with the company. 2/
— Zoë Schiffer (@ZoeSchiffer) March 25, 2023
