According to reports from Platformer and The Information, Elon Musk has valued Twitter at $20 billion, less than half of the $44 billion he paid to acquire the social media platform. In a memo to staff, Musk stated that employees would receive stock grants based on Twitter’s $20 billion valuation. Last year, Musk admitted he was overpaying for Twitter at $54.20 per share and cited the price as a reason for attempting to back out of the deal.
Musk reportedly wrote in the memo that he sees a “clear but difficult path” to achieving a $250 billion valuation, which would make Twitter’s current stock grants worth 10 times as much as they are now. The report also notes that Twitter will reportedly let employees cash in their stock grants at specified periods, similar to Musk’s company SpaceX.
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Musk reportedly views Twitter as an “inverse startup” due to the necessary changes he made to the platform to save it from bankruptcy. However, the new $20 billion estimate likely reflects challenges that emerged due to some of these radical changes, such as the new Blue with verification subscription that led to a wave of fake accounts and a “general amnesty” policy that brought back some of Twitter’s worst users.
