Elon Musk Values Twitter at $20B, Down from $44B Acquisition Price

Credit: Elon Musk/Twitter

According to an internal email viewed by American news media, Elon Musk has asserted that the current value of Twitter is $20 billion, which is less than half of the $44 billion he paid for the social media platform just five months ago.

The email to employees announced a new stock compensation program in the San Francisco-based company, which attributes employees of stock in X Holdings, Twitter's umbrella company since Musk's acquisition in late October.

The compensation plan values the platform at $20 billion, slightly higher than Snap ($18.2 billion) and Pinterest ($18.7 billion), both of which are publicly traded.

In the internal email, Musk described the significant contraction in Twitter's value, stating that the platform faced severe financial difficulties and was on the verge of bankruptcy.

Musk, Twitter's majority shareholder, added that with advertisers, many of whom fled the platform after his acquisition, now returning, it looks like Twitter will break even in the second quarter of the year.

Musk has sharply reduced the group's payroll, from 7,500 to fewer than 2,000 employees. He stated in the email that he sees a "clear but difficult path" to a valuation of $250 billion without specifying the timeline.

Additionally, Twitter will allow employees of the social network to cash in shares every six months. An AFP query sent to Twitter's communications department generated an automatic response in the form of a poop emoji.

Related: Elon Musk Claims Role in Preventing Twitter from Bankruptcy

Read Next: Video of Harry Styles and Emily Ratajkowski Sharing a Kiss Goes Viral

You can share this post!

---