Twitter’s staff received an internal memo on Friday which had Elon Musk inform them that the company’s current value is around $20 billion. From the $44 billion he spent to purchase the social network in October, this is a sizable decrease.
According to the NYT, which claims to have obtained a copy, the Chief of Twitter announced the new valuation in an email issued to all existing workers on behalf of the company. In the internal memo, Musk says Twitter is currently worth half its purchase price now, $24 billion less than what he bought it for.
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Musk predicted that Twitter would approximately cash flow break even in 2023 despite top sponsors cutting back on their spending on the social media network following his acquisition in December of last year.
Elon warns his staff in the message that, for a while, things were in danger of getting far worse when he took over. Musk described how, at one time over the past few months, Twitter was just four months away from reaching its financial limit and declaring bankruptcy.
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He reportedly continues in his note that the radical reforms he implemented, such as the mass layoffs and other cost-cutting steps, were required to save money. “Twitter is being reshaped rapidly,” Mr. Musk wrote, adding that the company could be thought of as “an inverse start-up.”
According to Musk’s email on the new equity compensation program, Twitter employees would get stock in X Corporation, the holding company he created to purchase the firm. These prizes will be given in accordance with the $20 billion valuation. In the email, Musk also expressed his opinion that Twitter may one day be worth $250 billion.
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Similar to the procedure at SpaceX, Twitter will permit employees to sell the stock every six months. Employees would have access to “liquid stock, but without the stock price chaos and lawsuit burdens of a public company,” according to Musk’s email.