Business

Less Than Half of What Elon Musk Paid for X, Now Worth $19 Billion

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.

Also Read : Nita Ambani Honored with ‘Global Leadership Award 2023’ for Philanthropy and Social Responsibility

 

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.

Also Read : 14-Day Rail Yatra To Convey G20 Summit Message Across Nation Starts

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.

 

Naiteek Bhatt

Recent Posts

Adani Group Stocks Recover As Sensex nd Nifty Post Gains

After a major sell-off earlier in the week, Adani Group stocks, led by Ambuja Cements…

60 minutes ago

Sensex Soars 1,961 Points, Nifty Gains 557 In Broad-Based Market Rally

A sharp rally in financial stocks and encouraging US labor market data fueled the uptrend.…

1 hour ago

PM Modi Engages In 31 Bilateral Meetings During Three-Nation Tour

PM Narendra Modi held 31 bilateral meetings and discussions during his visit to Nigeria, Brazil,…

2 hours ago

SC Reserves Verdict On Challenge To ‘Socialist’ And ‘Secular’ In Preamble

These words were added during the 42nd Amendment in 1976, under the tenure of Prime…

2 hours ago

CPS Appointment Cancellation: Supreme Court Issues Notice to Himachal Pradesh Government

During the hearing, the Supreme Court clarified that the six MLAs removed as Chief Parliamentary…

2 hours ago

BGT 2024-25: India 150 All Out, Bumrah’s 4-17 Rocks Australia To 67/7 On Day One

Bumrah’s 4-17, backed by Mohammed Siraj and debutant Harshit Rana, helped India seize the momentum…

2 hours ago