Elon Musk has valued Twitter at $20 billion — less than half of the $44 billion value the CEO had bought it for last October.
The announcement was made in a memo that Musk sent to Twitter employees last Friday, where he revealed a new stock compensation program based on the reported $20 billion valuation.
In the email, the billionaire CEO also told employees that they will receive stock in X Corporation, the holding company he used to buy the social media app.
The company will allow them to sell the stock every six months, as is practiced at SpaceX. According to Musk, allowing them to sell private stock will give them “liquid stock, but without the stock price chaos and lawsuit burdens of a public company.”
Musk also warned his employees that the platform, which he deemed as an “inverse startup,” remained in a precarious financial position where it was once four months away from going bankrupt. He also explained that the “radical changes” like the mass layoffs and cost-cutting measures had to be done to save the company from bankruptcy.
Additionally, the CEO told his employees that he sees a “clear but difficult path” for Twitter reaching a $250 billion valuation - 10 times as much as its current stock grants.
Musk urges employees to work at office in late night memo
Last Wednesday, Elon Musk reportedly emailed employees at 2:30am to remind them that working at the office is “not optional.” The email also noted that the company’s San Francisco headquarters had been half empty from the day before.
In November 2022, the CEO has made his clear stand against remote work, ending work-from-home for his employees, telling employees that live near the office to show up or consider their “resignation accepted.”
When reached out for comment, Twitter Press responded with a poop emoji - the company’s new automated reply as per Musk’s announcement last week.