Elon Musk Announces Twitter’s Estimated Market Value

Elon Musk, the owner of Twitter, has revealed that the social media platform is currently valued at $20 billion, which is less than half of the $44 billion he paid for it five months ago. This information was shared in an internal email seen by American news media. The email also mentioned a new stock compensation program for the San Francisco-based company and the allocation of shares to employees of X Holdings, Twitter’s umbrella company since Musk purchased it in late October. This value of $20 billion is slightly more than Snap ($18.2 billion) or Pinterest ($18.7 billion), both of which are publicly traded. Musk also stated that Twitter would allow its employees to cash in shares every six months. In the email, Musk discussed the drastic decrease in Twitter’s value and how it was on the verge of bankruptcy due to its revenue drop of $1.5 billion a year and a debt-servicing burden of the same amount. However, he believes that the platform will break even in the second quarter of the year due to advertisers returning. Musk has also cut the group’s payroll from 7,500 employees to fewer than 2,000. He concluded by saying that he sees a “clear but difficult path” to a valuation of $250 billion, without specifying how long that might take.