Elon Musk says Twitter is worth less than half of what he bought it for
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Elon Musk says Twitter is now worth less than half of what he bought it for - and, if you remember correctly, it was like $44 billion...so, yeah, a big drop indeed.
Chief Twit made the new assessment in a company-wide email he sent to remaining employees — this according to the NYT, which says it got its hands on a copy. In the internal memo, EM says Twitter is currently worth $20 billion... $24 billion less than its purchase price.
While this may sound catastrophic, Elon actually told his employees that - for a time - things were likely to be much worse after he took over...explaining that Twitter was 4 months away from running out money and went bankrupt at some point in the last few months.
In his memo, he allegedly went on to say that the "sweeping changes" he imposed were necessary to save money, including mass layoffs and other cost-cutting measures (that's i.e. auctions, etc.). The Times reports that EM also said Twitter should be considered a "reverse startup".
Now, as to why he was spilling that information about the Twitter family...the Times says he was explaining their new stock compensation package. Basically, Twitter employees will receive stock awards for the holding company it used to buy Twitter - the "X Corporation" - which will run at the current estimate of $20 billion. Workers will then be able to sell and cash in their private shares every six months. His other company, SpaceX, is doing the same.
One last thing... apparently Elon has high hopes for Twitter. He wrote that he thinks the Bird app could one day be worth up to $250 billion! *Insert Dr. Evil's laugh*
Getty
Elon Musk says Twitter is now worth less than half of what he bought it for - and, if you remember correctly, it was like $44 billion...so, yeah, a big drop indeed.
Chief Twit made the new assessment in a company-wide email he sent to remaining employees — this according to the NYT, which says it got its hands on a copy. In the internal memo, EM says Twitter is currently worth $20 billion... $24 billion less than its purchase price.
While this may sound catastrophic, Elon actually told his employees that - for a time - things were likely to be much worse after he took over...explaining that Twitter was 4 months away from running out money and went bankrupt at some point in the last few months.
In his memo, he allegedly went on to say that the "sweeping changes" he imposed were necessary to save money, including mass layoffs and other cost-cutting measures (that's i.e. auctions, etc.). The Times reports that EM also said Twitter should be considered a "reverse startup".
Now, as to why he was spilling that information about the Twitter family...the Times says he was explaining their new stock compensation package. Basically, Twitter employees will receive stock awards for the holding company it used to buy Twitter - the "X Corporation" - which will run at the current estimate of $20 billion. Workers will then be able to sell and cash in their private shares every six months. His other company, SpaceX, is doing the same.
One last thing... apparently Elon has high hopes for Twitter. He wrote that he thinks the Bird app could one day be worth up to $250 billion! *Insert Dr. Evil's laugh*
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