Elon Musk said that Twitter was dangerously close to running out of cash.

Elon Musk informed Twitter’s staff via email on Friday that the company’s worth has just decreased from $44 billion to $20 billion. This represents a big decrease from the price he spent to purchase the business in October of last year.

The email, which was issued to introduce a new stock compensation programme, was examined by The New York Times. Musk warned the staff that Twitter’s financial status was still precarious and that the business has previously come dangerously close to running out of money with only four months’ worth of operating expenses remaining.

He claimed that in order to avoid bankruptcy and streamline operations, extreme actions including major layoffs and cost-cutting were required.

Elon Musk asserts that Twitter is changing quickly and that it can be considered a “inverse start-up” because of this.

With Musk’s significant restructuring of the business, Twitter’s value has significantly decreased. Musk privatised Twitter in October, freeing it from the requirement to make its financial data available to the public. The billionaire has, however, warned that Twitter may go bankrupt and publicly claimed that the company’s revenue dropped as a result of advertisers quitting the network after his takeover.

Almost defeating Snapchat

Twitter’s $20 billion valuation slightly exceeds that of Snap, the parent firm of Snapchat, which has struggled as a result of a decline in advertising and revenue. Currently, Snap has roughly 375 million daily active users, compared to Twitter’s 237.8 million declared in its last public statement before going private, and has a market capitalization of around $18 billion.

Musk did not react when asked for comment. The response from Twitter’s communications team included a faeces emoji. The increased valuation of the social network was first published by The Information.

Twitter might be $250 billion in value.

According to Mr. Musk’s email on the most recent equity incentive programme, employees of Twitter will get shares of the holding company he used to purchase the social network, X Corporation. These awards will be made based on the $20 billion valuation that is currently in effect. In the email, Mr. Musk also emphasised his conviction that Twitter has the potential to someday reach a value of $250 billion.

Further in the email, Mr. Musk declared that Twitter would follow the same procedure as his privately held rocket business SpaceX and permit employees to sell their shares every six months.


According to Musk’s message, the purchase of private equities would give staff access to “liquid shares, but without the stock market turmoil and litigation hassles of a public firm.”

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