X, previously recognized as Twitter, has awarded stock grants to its employees, valuing the company at $19 billion, a 55% decrease from the $44 billion Elon Musk spent to acquire it. Musk acknowledges that he may have paid too much for the social network and has since implemented substantial transformations, including revamping the company, altering verification procedures and content moderation rules, and increasing its debt load. Despite the diminished value, Musk maintains a positive outlook on X's prospects and intends to enhance its offerings.
In Los Angeles, X, previously identified as Twitter, distributed stock grants to its employees on Monday, revealing an approximate valuation of $19 billion. This marks a considerable decrease of around 55% from the $44 billion that Elon Musk spent to acquire the company a year ago, as per internal documents reviewed by The New York Times.
Musk bought Twitter at $54.20 per share just over a year ago, but he now thinks he overpaid.
In March, he sent an email to his employees, stating that he considered the company's value to be $20 billion and referring to it as an "inverse startup."
In the documentation for the latest stock grants, X indicated that the equity would be provided at $45 per share in the shape of restricted stock units, which employees can accumulate gradually. The company mentioned that employees would still receive $54.2 in cash for any remaining shares allocated to them by the previous management. The reason for the share price not declining in tandem with the company's valuation is not apparent, although X might have adjusted the quantity of outstanding shares.
During Musk's year of ownership, Twitter saw major changes, including significant employee turnover, alterations to verification and content rules, a sharp drop in US advertising revenue, and a substantial debt load. Musk remains optimistic, with plans to expand X as an all-in-one app, offering features like dating and job recruitment.
