In an internal email, Elon Musk tells his employees that Twitter is now only worth $20 billion. Half of what it used to be worth.
Times are tough for Elon Musk’s finances, it seems. At least not when it comes to the social network he currently runs. An internal company email has been leaked in which the supposedly richest man in the world complains about the company’s current value.
It seems that Musk didn’t make the best decisions to improve Twitter’s finances and business, as the company is now worth half of what it was when he bought it.
Anyone who has used the social network in recent months can attest to the fact that there have been too many turbulent changes and the user experience has not really improved. At the same time, some changes have been implemented, which usually means that users have to start paying for features that were previously free or were free on other platforms.
It is in this context that an internal message written by Musk himself to the company’s staff began to circulate, in which he indirectly admits that the site he acquired for a monumental sum has been devalued.
Twitter is now worth half as much on the market, thanks to Elon Musk?
An article in the New York Times reveals that Elon Musk now considers Twitter to be worth $20 billion, a figure that is much lower than the $44 billion he paid in October 2022 to buy the platform.
This claim about the current value of the social network was made by Elon himself in an internal email sent to company employees, but was leaked and ended up in the hands of the New York newspaper.
The email was reportedly sent to employees to announce details of a stock compensation program. This may explain why Elon Musk claimed that Twitter was in financial trouble due to massive staff cuts that left the company with the bare minimum.
Elon Musk even claims in the post that Twitter was months away from running out of money, justifying the cuts already described. Ultimately, Musk’s compensation will be in the form of the company’s own shares, so that employees will be able to sell them in six-month periods.
In other words, he copied SpaceX’s compensation plan and justified not giving money to his employees by cutting the company’s cost estimate in half.