After buying Twitter for USD 44 billion, Musk says platform’s price dropped by half to USD 20 billion
4 min readNEW YORK: Elon Musk has put the present worth of Twitter at $20 billion, lower than half the $44 billion he paid for the social media platform simply 5 months in the past, in response to an inside electronic mail seen by American information media.
The electronic mail to workers referred to a brand new inventory compensation program within the San Francisco-based firm and the allocation of shares to workers of X Holdings, Twitter’s umbrella firm since Musk bought it in late October.
The compensation plan values the platform at $20 billion, barely greater than Snapchat’s mum or dad firm Snap ($18.2 billion) or Pinterest ($18.7 billion), each of that are publicly traded, in contrast to Twitter.
Musk, who can be the chief government of Tesla Inc. and aerospace group SpaceX, mentioned that Twitter would enable its workers to money in shares each six months.
A question from AFP emailed to Twitter’s communications division generated an computerized response within the type of a poop emoji.
In the interior electronic mail, Musk describes the brutal contraction in Twitter’s worth. He says the platform confronted such grave monetary difficulties that at one level it was on the verge of chapter.
“Twitter was trending to lose ~$3B/year,” Musk mentioned in a message posted Saturday on the platform.
He cited a income drop of $1.5 billion a yr and a debt-servicing burden of the identical quantity — leaving it with “only 4 months of money.”
Musk, Twitter’s majority shareholder, added merely: “Extremely dire situation.”
But he then mentioned that “It looks like we will break even” within the second quarter of the yr, with advertisers — lots of whom fled the platform after the mercurial billionaire purchased it — now starting to return.
Since taking management, Musk has sharply reduce the group’s payroll from 7,500 workers to fewer than 2,000.
He mentioned within the electronic mail that he sees a “clear but difficult path” to a valuation of $250 billion, with out specifying how lengthy that may take.
However, in one other setback for the corporate, fragments of Twitter’s supply code had been revealed on the event platform GitHub, the latter advised AFP on Sunday, confirming a report by the New York Times.
GitHub eliminated the recordsdata from its web site at Twitter’s request, however their transient publicity may enable hackers to establish flaws in Twitter’s unique software program.
NEW YORK: Elon Musk has put the present worth of Twitter at $20 billion, lower than half the $44 billion he paid for the social media platform simply 5 months in the past, in response to an inside electronic mail seen by American information media.
The electronic mail to workers referred to a brand new inventory compensation program within the San Francisco-based firm and the allocation of shares to workers of X Holdings, Twitter’s umbrella firm since Musk bought it in late October.
The compensation plan values the platform at $20 billion, barely greater than Snapchat’s mum or dad firm Snap ($18.2 billion) or Pinterest ($18.7 billion), each of that are publicly traded, in contrast to Twitter.googletag.cmd.push(operate() googletag.show(‘div-gpt-ad-8052921-2’); );
Musk, who can be the chief government of Tesla Inc. and aerospace group SpaceX, mentioned that Twitter would enable its workers to money in shares each six months.
A question from AFP emailed to Twitter’s communications division generated an computerized response within the type of a poop emoji.
In the interior electronic mail, Musk describes the brutal contraction in Twitter’s worth. He says the platform confronted such grave monetary difficulties that at one level it was on the verge of chapter.
“Twitter was trending to lose ~$3B/year,” Musk mentioned in a message posted Saturday on the platform.
He cited a income drop of $1.5 billion a yr and a debt-servicing burden of the identical quantity — leaving it with “only 4 months of money.”
Musk, Twitter’s majority shareholder, added merely: “Extremely dire situation.”
But he then mentioned that “It looks like we will break even” within the second quarter of the yr, with advertisers — lots of whom fled the platform after the mercurial billionaire purchased it — now starting to return.
Since taking management, Musk has sharply reduce the group’s payroll from 7,500 workers to fewer than 2,000.
He mentioned within the electronic mail that he sees a “clear but difficult path” to a valuation of $250 billion, with out specifying how lengthy that may take.
However, in one other setback for the corporate, fragments of Twitter’s supply code had been revealed on the event platform GitHub, the latter advised AFP on Sunday, confirming a report by the New York Times.
GitHub eliminated the recordsdata from its web site at Twitter’s request, however their transient publicity may enable hackers to establish flaws in Twitter’s unique software program.
