Four months before the money runs out: Twitter costs less than half the price offered by Elon Musk

Twitter is starting to suffer seriously due to its poor ability to generate a steady income. The social network was acquired by Elon Musk in October 2022 for a total $44 billionbut it seems that constant internal crises – massive layoffs, pay problems, lack of sustainable monetization models and others – caused a consistent drop in the company’s value, and Elon himself confirmed that the new price below half the cost is set by the same employer.

According to the information, an email sent by Musk to Twitter employees sets the company’s current value at $20 billion, 54.5% less than the amount set by the businessman to the board of directors of the social network. it’s with X Corporation, one of his companies.

This compensation system includes a series of X Corporation shares totaling less than $20 billion that can be traded within six months, a business practice that replicates the incentives in SpaceX, Musk’s aerospace project, which is also listed as a private investment and carries no responsible for sharing information about its funding.

In a statement, Elon Musk mentions that a new compensation program in the form of shares of the company is beginning in the midst of an unstable financial situation, which in just four months she will run out of money, according to the media. In the same letter, the businessman mentioned that Twitter could reach a $250 billion valuation in the future.

Twitter is financial chaos

After the merger with X Corporation, Twitter lost financial support due to the apparent exit of advertisers after Elon Musk’s “inauguration” and the little resistance that programs like Twitter Blue are sustaining among several users of the platform, currently valued at $237 million. before the company goes private.

A month after the acquisition, Musk mentioned in a meeting with employees Twitter that the company can enter into the process bankruptcy if effective monetization mechanisms were not created on the platform, which was not corrected in six months of the new administration.

The global availability of Twitter Blue, a monthly subscription system that allows users to check a Blue Check account and receive other benefits, should increase the attractiveness of the social network’s offering. However rejection of “obsolete” verification badges, those delivered to celebrities and relevant people online are predicted to result in fewer “active users”.