According to an email seen by The Wall Street Journal, Elon Musk announced that Twitter Inc. employees would be receiving stock awards based on a valuation of roughly $20 billion, which is less than half of the $44 billion he had acquired the company for last year.
In the note to staff, Musk expressed his optimism about the future of the social media company, stating that he sees a clear, albeit difficult, path to a valuation of more than $250 billion, which would make the current stock grants worth 10 times more, the Wall Street Journal reported.
Musk also mentioned that Twitter is undergoing radical changes so quickly that it can be viewed as an inverse startup, and that these changes were partly necessary to prevent the company from going bankrupt.
The new valuation figure reflects the challenges that Twitter has faced since Musk took over, with many big advertisers stopping their spending on the platform, which has impacted Twitter’s main source of revenue. However, the company has been trying to attract advertisers back.
Written by staff