Elon Musk acquired Twitter for 44 billion dollars, and in half a year the social network lost half its value.
Twitter begins to seriously suffer from its poor ability to generate sustained income.
The social network was acquired by Elon Musk in October 2022 for a total amount of 44 billion dollars ,
but it seems that the constant internal crises – mass layoffs, payment problems, lack of sustained monetization models and others – have caused a consistent drop in the value of the company, and Elon himself has confirmed that the new price is below half the value established by the same businessman.
According to The Information , an email sent internally by Musk to Twitter employees establishes the current value of the company at 20 billion dollars, a drop of 54.5% from the amount established by the businessman to the board of directors of the social network. to merge it with X Corporation, one of his companies.
This compensation system includes a series of shares of X Corporation for a total value of less than 20 billion, which may be sold in a period of six months, a business practice that replicates the incentives within SpaceX, the company Musk’s aerospace project that is also listed as a private investment and not responsible for sharing information about its financing.
In the statement, Elon Musk mentions that a new compensation program in company shares is starting, in the midst of a precarious financial situation that puts it just four months away from running out of money , according to the outlet. In the same email, the businessman mentioned that Twitter could, in the future, achieve a valuation of 250 billion dollars.
Twitter is financial chaos
Since the merger with X Corporation, Twitter has lost financial traction, due to an evident departure of advertisers after Elon Musk’s “inauguration” and the little drag that programs like Twitter Blue maintain among the few users of the platform, currently calculated at $237 million until before the company becomes privately owned.
A month after the acquisition , Musk mentioned in a meeting with Twitter employees that the company could enter bankruptcy proceedings if efficient monetization mechanisms were not generated on the platform, a reality that has not been remedied in half a year again. administration.
The global availability of Twitter Blue , the monthly subscription system that allows blue check account verification and other benefits to its users, should add to the appeal of the social network’s offerings. However, the withdrawal of “legacy” verification badges, those given to celebrities and relevant people on the network, will cause a decrease in the number of “heavy users”, according to specialist forecasts.