Elon Musk puts Twitter’s value at $20bn
According to an internal email obtained by American news outlets, Elon Musk has valued Twitter at $20 billion, less than half the $44 billion he spent for the social media platform just five months ago.
The email to staff mentioned a new equity compensation program and the distribution of shares to employees of X Holdings, Twitter's parent company since Musk purchased it in late October.
The platform is valued at $20 billion under the compensation plan, which is somewhat more than Snapchat's parent company Snap ($18.2 billion) or Pinterest ($18.7 billion), all of which are publicly traded, unlike Twitter.
Musk, the CEO of Tesla Inc. and SpaceX, announced that Twitter employees would be able to cash in their shares every six months.
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An AFP inquiry sent to Twitter's communications department elicited an automatic answer in the form of a feces emoji.
Musk explains the devastating decline in Twitter's valuation in an internal email. He claims that the platform had such severe financial troubles that it was on the verge of bankruptcy at one time.
"Twitter was trending to lose $3 billion per year," Musk claimed in a message put to the network on Saturday.
He claimed a $1.5 billion loss in revenue every year and a debt-servicing load of the same amount, leaving it with "only 4 months of money."
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Musk, who owns the majority of Twitter, said simply, "Extremely dire situation."
However, he later stated that "it appears that we will break even" in the second quarter of the year, with advertisers, many of whom deserted the site when the erratic billionaire purchased it, now beginning to return.
Musk has reduced the group's payroll from 7,500 to fewer than 2,000 people since taking over.
In the email, he stated that he saw a "clear but difficult path" to a valuation of $250 billion, although he did not define how long that may take.
However, in another setback for the corporation, pieces of Twitter's source code were uploaded on the development platform GitHub on Sunday, according to the latter, confirming a New York Times claim.
The files were pulled from GitHub at Twitter's request, but their brief exposure may have allowed hackers to detect faults in Twitter's original software.
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