Twitter Is Worth $20bn, Less Than Half Of Acquisition Price, Says Elon Musk

Twitter Chief Executive Officer, Elon Musk, has valued the company at $20 billion, less than half of the price he paid to acquire the company last year.

Musk bought the company for $44 billion in April 2022, after a long and complicated process between him and the company’s board at the time.

He shared the underwhelming valuation with Twitter employees in a memo, while warning them that the website is still in a precarious position financially.

He added that at one point, the company was in danger of running out of cash completely.

“Twitter was trending to lose ~$3 B/year”, Musk said in the memo.

He also cited a revenue drop of $1.5bn a year and a debt-servicing burden of the same amount.

According to Engadget, he introduced a new stock compensation plan in the memo as a “clear but difficult” plan to a $250bn valuation.

The plan constitutes Musk allowing staff to sell stock every six months and would shield them from the ‘price chaos’ that comes with equity at a publicly traded company.

Twitter, however, suffered another setback recently, when parts of it’s original source code were published on the development platform GitHub. The files were later removed upon request from Twitter.