Elon Musk is currently celebrating one year since his high-profile takeover of Twitter (now X). Exactly on October 26, 2022, a billionaire. An era full of layoffs, bizarre decisions and changes, and a complete revolution that turned Twitter upside down.
Twitter (X) is today worth less than half of what Elon Musk paid
It now turns out that this year is also a time of a drastic decline in the value of the company, now called X Corp. (formerly Twitter Inc.) and belongs mainly to Musk himself. Information came to light about the real value of the platform after all the changes introduced by the controversial billionaire. Interestingly, this value was calculated by Elon Musk himself.
Jak , who had regard to the company’s internal documentation, on Monday, X’s employees were awarded part of the company’s shares, the value of which was estimated at $45 per share. This means that the value of the entire social platform is currently approximately USD 19 billion. This value was to be determined by the management board of X itself, which currently… does not exist. It has not yet been formally established, which is why its only member and president is Elon Musk. It was probably the billionaire and his advisors who calculated the real value of his company.
Elon Musk’s gigantic loss. But it could be even worse
As a reminder, Musk paid $44 billion for Twitter a year ago, which means that his new acquisition is currently worth $25 billion less. This is even less than half of the amount the billionaire had to pay at the time of the transaction. And although it is clear that the above-mentioned USD 44 billion was a slightly overestimated value, the decline in value is still gigantic.
Of course, the mentioned amount is only an estimate of X himself, because the company behind the portal, X Corp. is not a listed company. The company is 100 percent belongs to the holding company X Holdings Corp., which in turn is owned by Elon Musk. As explained by The Verge, X – similarly to Musk’s SpaceX – has released a package of shares for employees, thanks to which they will become a small part of the company’s co-owners, and in four years (for such a period) these shares will be able to monetize.
Therefore, one cannot be sure that the mentioned USD 19 billion is the closest value to the truth. Previously published third-party estimates gave even lower values. (then it still operated under this name) for USD 15 billion. We will only find out how much X is really worth when Elon Musk decides to sell it or put it on the stock exchange. And that may never happen.
Source: Gazeta
Mabel is a talented author and journalist with a passion for all things technology. As an experienced writer for the 247 News Agency, she has established a reputation for her in-depth reporting and expert analysis on the latest developments in the tech industry.
