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Reportedly, Elon Musk estimates Twitter’s value to be $20 billion. #ElonMusk #Twitter #valuation

Elon Musk allegedly values Twitter at $20 billion in an internal email seen by The Verge and Protocol. The valuation represents a significant drop from the $41.2 billion Musk reportedly paid to acquire the company just a few months ago. The email was sent to Twitter employees, along with an announcement regarding a new stock compensation program. Musk also reported seeing a “clear but difficult path” to a $250 billion valuation, which would make the company’s current stock grants worth 10 times as much in the future. The program will also allow staff to sell stock every six months, similar to SpaceX. Twitter has faced financial difficulties since Musk’s takeover, with daily revenue being reported at $5 million, and only 180,000 US subscribers for the Twitter Blue service as of February 2023.

The email from Musk also reportedly warned Twitter’s employees that the website is still in a precarious financial position, and that the company was once four months away from running out of cash. The announcement of the new compensation program is viewed as a way to offer some relief to Twitter employees while shielding them from the price chaos that comes with equity at a publicly traded company. The program will award stock compensation that is based on X Corp stock, with current grants based on the $20 billion valuation.

At $20 billion, Twitter would be worth more than Snapchat creator Snap, despite the latter having nearly 140 million more daily active users. However, the value given by Musk is likely reflective of the difficulties Twitter has faced under his decisions. The company’s daily revenue has been significantly impacted, with over 500 of its top advertising partners having paused spending on the platform. The abuse of verified trolls impersonating brands also led to many companies leaving the platform. Based on recent reporting by The Verge, there were only about 180,000 Twitter Blue subscribers in the US at the beginning of February, suggesting the service is nowhere close to making up for the financial downturn experienced by Twitter since Musk’s takeover.

Vaibhav Kulkarni
I am Vaibhav Kulkarni, Blogger By Passion, Civil Engineer By Profession. I am Tech Enthusiast and Travel Lover. I started my journey 3 years back with some ideas and no coding experience. I was always fascinated with technology and its credibility. I firmly believe in "Creating jobs rather than asking for one".