How much is Twitter actually worth?
Elon Musk has bought Twitter for a record $44 billion. But since then, the value of Twitter has more than halved, Musk admits in an internal memo.
When Elon Musk announced that he wanted to buy Twitter for 44 billion US dollars, it probably took one or the other in the tech industry their breath away. The Tesla boss was still considered the richest man in the world at the time. Still, it was an enormous sum.
But the takeover, from which Musk wanted to withdraw in the meantime, brought the social network into turbulent waters. And that’s exactly what Twitter hasn’t left since.
Whether mass layoffs, fake verifications or moderation chaos – the short message service has been through a lot since it was taken over by Elon Musk. And that is now also reflected in the value of the company.
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How much is Twitter still worth?
How the information and Zoë Schiffer from platformers report, Elon Musk announced the current value of Twitter in an internal memo. The number is well below the amount the Tesla CEO has plunked down for the social network.
According to this, Musk informs the remaining employees of Twitter in an e-mail about the share allocations to which they are entitled. These are based on a valuation of just 20 billion US dollars – less than half of Twitter’s original purchase price.
Comp increases will be based on X Corp stock. Current grants are based on a $20b valuation. Musk says he sees a “clear but difficult path” to $250 billion valuation which would mean current grants could be 10x. 3/
— Zoë Schiffer (@ZoeSchiffer) March 25, 2023
Did Elon Musk Pay Too Much for Twitter?
Even before his takeover of Twitter, Elon Musk already suspected that his bid for the takeover of Twitter was probably a bit too high. Then even then he saidthat he “obviously pays just too much for Twitter”.
The offer of 54.20 US dollars per share was certainly also a reason why the Tesla boss wanted to withdraw from his deal with Twitter prematurely. At the time, Musk accused the social network of providing false information about fake accounts.
The Value of Twitter: What’s Next?
As Zoë Schiffer writes, Musk sees Twitter as a “reverse startup”. The company has gone through a phase of radical change. But these changes were necessary.
According to Musk, Twitter now has “a clear but difficult path” ahead of it. At the end of this path, however, he sees the company valued at $250 billion.
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