A year ago, the visionary entrepreneur Elon Musk surprised the world by purchasing Twitter, the popular social network of tweets, for the astronomical sum of 44 billion dollars.
Today, however, it seems that his dream has turned into a nightmare: according to an internal evaluation, Twitter (or if you prefer X) it is now worth only $19 billionless than half of what Musk paid.
Did Elon Musk contribute to the devaluation of Twitter?
The news was revealed by The Verge, which had access to internal documents of X, the company created by Musk to manage Twitter. In these documents, we read that X’s employees received shares of the company at a price of $45 per share, corresponding to a total valuation of $19 billion.
It is a 55% drop from Musk’s original purchase price.
Musk, who is X’s president and has not yet appointed a board of directors, has said in the past wanting to make Twitter like SpaceX, his private space company. In particular, he said he wanted to adopt the same compensation plan for employees, which provides for the possibility of selling part of their shares to external investors. The shares that
Also one of Musk’s big investors, Fidelity, expressed doubts about the value of Twitter. According to Fidelity, in fact, Twitter is worth 65% less than when Musk bought it. This is a notable difference compared to X’s internal assessment.
What caused Twitter to lose so much value in such a short time? What are Musk’s plans to revive the social network? And above all, who will want to buy the shares of X’s employees if the company is worth so little? These are the questions that many observers and Twitter users are asking themselves, as they await Musk’s next moves with curiosity and apprehension.