Elon Musk bought Twitter for a Whopping $44 billion just five months ago. However, recently an internal email has revealed that now the estimated value, according to Musk, is just $20 billion.
According to American news media, the email sent to employees mentioned about a new stock compensation program in the company and the attribution to employees of stock in X Holdings, Twitter’s umbrella company since Musk took over it in October.
The compensation plan estimated Twitter’s value at $20 billion, just a little more than that of Snapchat (standing at $18.2 billion) and Pinterest ($18.7 billion).
According to the details, Musk admitted shrinkage in Twitter’s value and even mentioned that there came a point when the social media platform was at the brink of bankruptcy.
Musk said, “Twitter was trending to lose ~$3B/year.” He further said that Twitter faced a revenue drop of $1.5 billion a year and was left with “only 4 months of money.”
Musk explained it as an “Extremely dire situation.” He also said that advertisers who left the platform few months ago have also started to return. He also said, “It looks like we will break even” in the second quarter.
Ever since Musk has taken over the platform, he has laid off a number of employees. He says he sees a “clear but difficult path” to a valuation of $250 billion.
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