In an internal email to Twitter employees, the company’s owner, Elon Musk, stated that the value of Twitter is now estimated at $20 billion. This is less than half of the $44 billion Musk paid for the service last year.
In connection with an offer for Twitter employees to receive shares in the company, Musk announced the company’s new valuation. He also says that he sees a “clear but difficult path” for the company’s value to increase to $250 billion in the future, which means that the shares that Twitter employees are now receiving could increase in value by more than ten times.
Since Musk took over Twitter, thousands of employees have been laid off, and many major advertisers have also stopped advertising on Twitter, which is believed to have significantly reduced the company’s value since Musk took over.
Musk stated last year that he’s “obviously overpaying” for Twitter at $54.20 per share. Price was also one of the reasons why he attempted to back out of the deal last year, claiming that the company made false and misleading statements about the presence of bots on the platform.
