Elon Musk Says Twitter is Value Much less Than Half of What He Purchased It For

Elon Musk says Twitter is now price lower than half of what he purchased it for — and, if you happen to’ll recall, that was like $44 billion … so, yeah, a BIG drop-off certainly.

The Chief Twit made the brand new valuation in a company-wide electronic mail he despatched to remaining staff — this per the NYT, which says it acquired its arms on a replica. Within the inner memo, EM says Twitter is at present price $20 billion … $24 billion lower than his buy value.

Whereas that will appear abysmal, Elon truly informed his employees that — for a time — issues had been vulnerable to being a lot worse after he took the reins … explaining Twitter was 4 months away from working out of cash and going bankrupt at one level over the previous a number of months.

In his notice, he reportedly goes on to say that “radical modifications” he is imposed had been obligatory to economize — together with the mass layoffs and different cost-cutting measures (i.e. auctions, and many others.). The Occasions stories EM additionally stated Twitter ought to be checked out as an “inverse start-up.”

Now, as for why he was spilling these deets to the Twitter fam … the Occasions says he was explaining their new inventory compensation package deal. Principally, Twitter staff will obtain inventory grants for the holding firm he used to purchase Twitter — the “X Company” — which can function beneath the present $20B estimate. Staff will then be capable to promote and money in on their privately held inventory each six months. His different firm, SpaceX, acts equally.