Twitter's valuation is now only half the price of buying Elon Musk, will it go bankrupt?

 Twitter's valuation is now only half the price of buying Elon Musk, will it go bankrupt?

Elon Musk explained that radical changes at the company, including mass layoffs and cost cuts, were necessary for Twitter to avoid bankruptcy.

Tesla Chief Executive Officer (CEO) Elon Musk revealed Twitter is now worth around US$20 billion, less than half the US$44 billion.

 Billionaire pay to buy the social platform last October. Reporting from the New York Times on Monday (3/27/2023), the report was sent to employees via an email to announce a new stock compensation program.

 The memo contains Elon Musk warning employees Twitter is still in a precarious financial position and is only four months away from running out of money. Elon Musk explained that radical changes at the company, including mass layoffs and cost cuts, were necessary to avoid bankruptcy and streamline operations.

Twitter is being reshaped quickly, Elon Musk

Twitter's valuation has declined as Elon Musk has dramatically overhauled the company. 

In October, Elon Musk made Twitter a private company, which means he is no longer obliged to provide transparency about its finances.

However, the billionaire has publicly indicated that the company is losing revenue as advertisers leave the platform after the acquisition, and has suggested that Twitter is in danger of going bankrupt.

However, the US$20 billion figure makes Twitter's market capitalization slightly higher than Snap, Snapchat's parent company, which has recently experienced a decline in advertising and expects its revenue to fall. 

Snap which has a market capitalization of about US$18 billion, has about 375 million daily active users, compared to 237.8 million Twitter users at the company's last public disclosure before becoming a private company.

Until now, Elon Musk has not made any further comments regarding the decline.

Elon Musk's says email about stock compensation program,

 Twitter employees will receive shares in X Corporation, the holding company he used to buy the company. 

The award will be made at a valuation of US$20 billion. The SpaceX CEO also said in the email that he believes Twitter could one day be worth US$250 billion. 

Twitter will plan to allow employes to sell share every six months to the practice at SpaceX, And some company. "Private stock sales will allow employes to own liquid stock, but without the share price chaos and lawsuit burden of a public company," Elon Musk. 

Elon Musk previously said in December that Twitter was on track to break even on cash flow by 2023 as top advertisers cut their spending on the social media platform following the billionaire's takeover.

by zoboss

.online