Most of Twitter's employees were let go or quit after the takeover.
The value of X, the website that was formerly known as Twitter, is less than what Elon Musk spent for it a year ago.
A source with knowledge of the situation estimates that the company is worth $19 billion, or $45 per share, based on restricted stock units granted to employees. Musk paid $44 billion to acquire Twitter Inc. a year ago.
The majority of Twitter employees were let go or quit after the acquisition. Musk rebranded the business as X, altered a few of the content guidelines, and saw a decline in advertising income of more than half.
An internal document was included in a previous story on the valuation by Fortune.
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Since Musk bought the company, its finances have been difficult. Based on a combination of debt and equity, Twitter was valued at $44 billion at the time of the buyout. Since Musk’s acquisition, the company has incurred $13 billion in debt, and his unpredictable decision-making and laxer content-safety regulations have alienated advertisers, resulting in a 60% decline in revenues. According to an earlier estimate from Bloomberg, X also owes roughly $1.2 billion in interest payments annually on its debt.
Musk intends for X to transition from advertising to subscription fees. However, less than 1% of users have been convinced by the corporation to join up for its monthly premium service, which translates to less than $120 million annually, according to estimates made by Bloomberg.
Additionally, Musk has made no secret of his intention to transform X into a “everything app” with the ability to accept payments and conduct commerce. The startup revealed ambitions to develop a news wire, launched audio and video calling earlier this month, and has a test employment service. Musk informed staff members that X intends to take on PR Newswire from Cision, Microsoft Corp.’s LinkedIn, and Google’s YouTube.
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CEO Linda Yaccarino presented concepts for X’s new offerings, such as the introduction of advertising tiers, to bankers this month at a meeting to discuss the company’s financial plan. Musk has previously shown interest in taking X public, but the company’s sharp decline in valuation may make it challenging.
