Elon Musk bought Twitter to $44 billion USD in 2022. Now, however, he sees the company as worth less than half of what he paid last year. This is what reveals a communication that the tycoon made to the employees of the social network to explain a new stock compensation program, worth nearly $20 billion.
Twitter is “changing so quickly” that it can now be seen as “a start the opposite”, says Musk in the note sent by email to his employees, to which they had access wall street newspaper and other media. He explains that the brutal drop in the company’s value is due to a loss of revenue of US$ 1.5 billion dollars. It also mentions debt maturities of another equivalent amount.
Twitter was made for lose 3 billion dollars a yearsaid Musk. “But now that advertisers are coming back, it looks like we’re going to break even in the second quarter” of 2023, said the CEO and majority shareholder of Twitter.
Elon Musk says Twitter has a “clear but difficult” path to recovery
Elon Musk also told Twitter employees that he sees a “clear but difficult path” to the company’s recovery. He predicted that, if all goes as planned, the company would be worth a few $250 billion in the future, 10 times the current value. Musk said he would allow employees to sell Twitter shares every six months, a policy similar to SpaceX, another of his companies.
Musk’s arrival at the company not only caused advertisers to flee. Twitter tried at least four widespread outages last February. This, compared to nine recorded throughout 2022, according to NetBlocks, a company that tracks internet outages.
Twitter lost more than half of its workforce, for layoffs or resignations since Musk took over. Among those who left, according to leaked employees and former employees, are several teams fundamental to the maintenance, privacy and security of the platform.
This weekend it became known that some parts of Twitter’s source code leaked. A user named “FreeSpeechEnthusiast” posted on Github, a platform owned by Microsoft, he detailed. Reuters. The information was open to the public for probably “for months”, until GitHub removed the files at Twitter’s request.