Elon Musk took over Twitter in October 2022 for $44 billion USD (about $60.2 billion CAD). 5 months in, and the corporate’s valuation has dropped by greater than 50 p.c.
In a latest memo despatched to employees, which was seen by Platformer’s Zoë Schiffer, through The Verge, Musk stated that Twitter is valued at $20 billion USD (about $27.4 billion CAD) and that staff would obtain inventory grants based mostly on that valuation.
Comp will increase can be based mostly on X Corp inventory. Present grants are based mostly on a $20b valuation. Musk says he sees a “clear however troublesome path” to $250 billion valuation which might imply present grants may 10x. 3/
— Zoë Schiffer (@ZoeSchiffer) March 25, 2023
Musk believes that Twitter may in the future attain a $250 billion USD (about $342.1 billion CAD) valuation. He says that reaching that valuation is a “clear however troublesome path,” which might make the present worker inventory grants price ten instances as a lot as they’re now. Musk additionally views Twitter as an “inverse startup” because of the vital modifications he made to the platform to put it aside from chapter. Nonetheless, the modifications launched, resembling the brand new Blue with verification subscription and Twitter’s “common amnesty” coverage that introduced again a few of Twitter’s worst customers, have induced challenges for the social media firm. Twitter has misplaced a few of its greatest advertisers, and its income dipped by about 40 p.c yr over yr in December.
Final yr, Musk said that he was overpaying for Twitter at $54.20 per share, and tried to again out of the deal, claiming that the corporate made false and deceptive statements concerning the presence of bots on the platform. Fixed authorized stress from Twitter meant that Musk needed to abide by his preliminary acquisition supply, and ended up taking up the social media firm for $44 billion. Solely time will inform whether or not Musk’s bold plans for Twitter will repay in the long term.
Picture credit score: Shutterstock
Supply: Platformer’s Zoë Schifferesla, By way of: The Verge
