Twitter is Now Worth Half of What Elon Musk Purchased it For
- Twitter is now worth half of what Elon Musk paid for it in October 2022, according to a report.
- Recent restricted stock units that the firm paid its employees were valued at $45 per share.
- This brings the firm’s total valuation to $19 billion, while it was originally purchased for $44 billion.
- X reportedly owes around $1.2 billion in interest payments on its roughly $13 billion in total debt.
Elon Musk, the CEO of Tesla and SpaceX, purchased social media platform Twitter almost a year ago, and now the firm is worth half of the original $44 billion that the billionaire entrepreneur had bought it for. Interestingly, the CEO of Binance, Changpeng Zhao, also helped Musk finalize the deal.
As per a report from Bloomberg on October 30, the internal memo and sources familiar with the matter confirmed that the restricted stock units that Twitter recently paid to its employees were valued at $45 a share, valuing the firm at around $19 billion, more than 50% lower than the heavy price tag that Musk paid it for on October 27, 2022.
Ever since taking over the platform, Musk has taken multiple controversial decisions that have attracted the attention of the digital asset community as well. The billionaire rebranded Twitter into X, the everything application. He also changed the platform’s multiple content policies and introduced a $1 verification badge as well. Immediately after taking over, Musk fired over 80% of the company’s workforce as well.
Additionally, a report from the WSJ confirms that ever since Musk took over Twitter, the total number of active users has declined on the social media platform by over 20%, while that of rival platforms like Instagram and Facebook has remained significantly higher. Moreover, Musk’s drastic changes and outspoken presence on X have also affected the platform’s revenue.
As per Bloomberg’s estimates, Musk has now lost at least half of its total advertising revenue. This has made the social media platform’s financial condition worrisome for the industry as a whole. At the time of writing, X reportedly owes around $1.2 billion in interest payments on its roughly $13 billion in total debt.
According to a previous report from BitcoinWisdom, Musk confirmed that he has no plans to integrate cryptocurrencies into X. Meanwhile, he has revealed that Twitter will mostly rely on paid user subscriptions, but less than 1% of the firm’s customers are actually opting for premium services.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
