The Information reports that Elon Musk has offered his Twitter employees new stock grants – which puts the overall company’s valuation at $20 billion!
This shows how deeply Musk’s acquisition had impacted Twitter, which he financed with $44 billion last year. Experts note the reason behind this fall is due to several advertisers having left the platform, citing uncertainties resulting from Musk’s management of the new Twitter.
The New Twitter Under Elon Musk
After an 8-month-long debate and drama, Elon Musk has finally acquired his favorite social media platform – Twitter last year. Soon, he made sweeping changes to the platform, right from its UI to content policies and the introduction of a revamped Blue subscription.
All these created havoc at the Twitter Inc, as some of these changes triggered insane consequences for both businesses and the individuals on the platform. Citing such uncertainties, several high-profile advertisers have cut off their spending on Twitter – putting a deep dent in the platform’s major revenue source.
Though Musk brought some of them back, it wasn’t enough to compensate for the growing losses. The company has lost so much of its value that, it was now valued by its billionaire owner at around $20 billion, as noted by The Information.
The news outlet reported that Elon Musk has been offering his Twitter employees new stock grants – as per a person familiar with an email Musk sent to staff. Musk had earlier projected that Twitter will generate a revenue of less than $3 billion this year, which is barely insufficient considering the company’s debt of $13 billion. And the new valuation of “$20 billion valuation implies a multiple of 11 times this year’s revenue to an implied enterprise value of $33 billion”.