Elon Musk has valued Twitter at $20 billion
According to a report by the Information, Twitter’s CEO, Elon Musk, has proposed offering the company’s employees stock grants at a valuation of approximately $20 billion. This information was reportedly disclosed in an email sent by Musk to Twitter staff, as reported by an individual familiar with the matter.
It is worth noting that the $20 billion valuation proposed by Musk is less than half of the $44 billion that he paid to acquire the social media platform, which suggests a drop in Twitter’s overall value. In December, Musk announced that Twitter is expected to achieve a “roughly cash flow break-even” status by 2023. However, the social media platform has been struggling in recent months, as top advertisers reduced their spending on the platform following Musk’s takeover.
Elon Musk, the CEO of Twitter, has offered the company’s employees stock-based awards worth nearly $20 billion, as reported by the Wall Street Journal. This value is less than half of the $44 billion Musk paid to acquire the social media platform in October 2022.
Musk has expressed optimism about Twitter’s future and stated that he sees a clear path to a valuation of over $250 billion, suggesting that shares awarded to employees now could potentially be worth ten times more in the future. However, Musk has also mentioned that significant changes are required to prevent Twitter from going bankrupt.
In a separate email sent to Twitter’s employees on Friday, the company stated that it would provide additional equity grants that will vest over a four-year period. The email further stated that a liquidity event would be offered in approximately a year, during which employees would be able to cash out some of their equity. However, there was no information available on the number of employees who will receive equity awards.
According to regulatory filings, Twitter spent around $630 million on stock-based compensation in 2021, the last full year before the company went private. Since Musk’s acquisition of Twitter, employees have had several questions about their compensation, including stock grants that typically vest over time.
Overall, Musk’s offer of stock-based awards and his statements about Twitter’s future indicate his belief in the company’s potential for growth and success. However, the proposed changes to prevent bankruptcy suggest that there may be challenges to overcome in achieving that potential.
