X is worth just $19 billion now, less than half of Elon Musk’s initial purchase price
X employees received stock grants that revealed the company's worth had fallen to $19 billion, down 55 percent from the $44 billion Musk paid.
Elon Musk’s takeover of Twitter in late 2022 was a major event. At that time, Twitter was struggling financially, with its stock prices dropping, and advertising revenue shrinking. Musk admitted he might have paid too much for it. But he had big plans to turn it around, aiming to make it a “one-stop shop” for financial services.
Now, one year after Musk acquired Twitter (now known as X), its value has dropped by more than half. X employees received stock grants that revealed the company’s worth had fallen to $19 billion, down 55 percent from the $44 billion Musk paid. These grants were given at $45 per share, while Musk had paid $54.20 per share.
The share price didn’t fall as much as the company’s valuation, possibly because X changed the number of shares available. The Board of Directors determines the share value, considering various factors and tax laws, though Musk has not formally established a board.
Until recently, X employees were unaware of the company’s valuation since Musk’s acquisition. The recent stock award disclosure indicates that Musk’s valuation might still be too optimistic. Some investors view the company as overvalued. Musk himself admitted to overpaying for Twitter, even though he initially valued it at $20 billion.
During the year following Musk’s acquisition, he made significant changes. He renamed Twitter to X, announced mass layoffs with over 80 percent of the workforce quitting or being fired, and revamped the verification and content moderation rules. Twitter’s main revenue source, advertising, dropped nearly 60 percent in the US over the summer, and Musk took on a considerable amount of debt for the acquisition.
Despite these setbacks, Musk remains optimistic about X’s future. During a recent company meeting, he shared his vision for X, aiming to transform it into a versatile app with various functions, including dating services and job recruitment.
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