X workers entered stock subventions that revealed the company’s worth had fallen to$ 19 billion, down 55 percent from the$ 44 billion Musk paid.
Elon Musk’s preemption of Twitter in late 2022 was a major event. At that time, Twitter was floundering financially, with its stock prices dropping, and advertising profit shrinking. Musk admitted he might have paid too important for it.
But he’d big plans to turn it around, aiming to make it a “ one- stop shop ” for fiscal services. Now, one time after Musk acquired Twitter( now known as X), its value has dropped by further than half. X workers entered stock subventions that revealed the company’s worth had fallen to$ 19 billion, down 55 percent from the$ 44 billion Musk paid.
These subventions were given at$ 45 per share, while Musk had paid$54.20 per share. The share price did n’t fall as important as the company’s valuation, conceivably because twitter changed the number of shares available.
The Board of Directors determines the share value, considering colorful factors and duty laws, though Musk has not formally established a board. Until lately, X workers were ignorant of the company’s valuation since Musk’s accession. The recent stock award exposure indicates that Musk’s valuation might still be too auspicious.
Also read: Twitter users claim to still have their blue checks even if they haven’t paid for them.
Some investors view the company as overrated. Musk himself admitted to overpaying for Twitter, indeed though he originally valued it at$ 20 billion. During the time following Musk’s accession, he made significant changes.
He renamed Twitter to X, blazoned mass layoffs with over 80 percent of the pool quitting or being fired, and revamped the verification and content temperance rules.
Twitter’s main profit source, advertising, dropped nearly 60 percent in the US over the summer, and Musk took on a considerable quantum of debt for the accession. Despite these lapses, Musk remains auspicious about X’s future. During a recent company meeting, he participated his vision for X, aiming to transfigure it into a protean app with colorful functions, including dating services and job reclamation.
