Twitter CEO Musk disclosed the $20 billion valuation in an internal message, where he also disclosed stock grants at the same valuation.
Elon Musk, the CEO of Twitter, recently sent an internal message to his team in which he estimated the social media business’s value to be about $20 billion. This is a huge fall from Musk’s buyout price from Twitter, which valued the company at $44 billion.
Musk’s memo not only disclosed the $20 billion valuation but also stock grants to staff members, which were purportedly computed at the same $20 billion valuation.
Both Twitter staff and users were shocked by the $20 billion estimate, which indicated a doubling decline in value. Particularly now that the CEO asserts to have restored the business to a considerably more stable state and put it on schedule to reach its cash flow break-even point in 2023.
By substantially cutting expenses and developing more efficient ways to generate income, the social media company that specialises in microblogging has been able to move its cash flow to the positive side.
Elon Musk, the company’s new CEO, immediately cut costs by eliminating more than 50% of its entire personnel. Job cuts and more rounds of layoffs will continue through 2023.
This large-scale layoff assisted the corporation in maintaining costs and closing multiple offices that were accounting for a significant portion of the costs.
Along with firing staff, Musk also unveiled fresher revenue streams for the business, including the return of political advertising on the site and the creation of a paid Twitter blue tick.
The European Union contacted Musk to hire additional human moderators in response to significant layoffs in its moderator team. Now, this is something that Musk does not want for Twitter since if this choice is made, the platform’s prices will significantly increase, in contrast to Musk’s desire for automation of Twitter’s content control process.