From $44 Billion to $20 Billion: Musk Slashes Twitter's Valuation After 5 Months
Elon Musk has brought down the valuation of Twitter by more than half, estimating the social media platform's value to $20 billion, that too just five months after acquiring it for $44 billion.
Musk agreed to the deal after a lengthy tussle with the initial Twitter management , which was highlighted in the midia with multiple twists, threats, and public insults.
Musk has trasitioned the firm private, that means he doesnt need to publicly announce the financial results.
Musk decided to make Twitter free sanctuary for conservatives by removing all safeguards limiting the spread of misinformation, racism, anti-Semitism, and hate speech, which scared off many advertisers.
Musk has drastically cut costs, resulting in the departure of 5,200 employees in less than three months.
For the remaining employees, the company plans to offer cash-out opportunities and promises they can sell their stock holdings during "liquidity events."
Musk urges employees to view Twitter as an "inverse startup" and asserts that radical changes were necessary to avoid bankruptcy.
Musk predicts a surge in valuation in the coming years and sees a clear, but difficult, path to a >$250B valuation for Twitter.