Elon Musk-Led X's Value Falls To $19B, Less Than Half Of Price He Paid For It

Elon Musk-Led X’s Value Falls To $19B, Less Than Half Of Price He Paid For It

The value of Elon Musk-led social media platform X (Twitter) has dropped to $19 billion. This is lower than the tech mogul’s $20 billion estimate and $44 billion that he paid for it.

According to a Bloomberg report, X is worth less than half of the price Elon Musk had paid for the company. To those unaware, Elon Musk shelled out a whopping $44 billion to acquire Twitter last year,

Now, restricted stock units awarded to employees value X at just $19 billion or $45/share. While Elon Musk spared no effort to bring down the price tag citing market conditions, Twitter executives ensured the Tesla CEO didn’t deviate from his initial word.

An internal email in March showed that Elon Musk himself believed Twitter was worth $20 billion, However, this value is also $1 billion more than the assessed value.

Twitter’s Transformation After Elon Musk’s Takeover

There have been a slew of notable changes at X since Musk acquired the company. A considerable number of Twitter staff either resigned or were laid off.

The company suffered a loss of more than half of its advertising revenue after its content rules were altered. The valuation report is part of an internal memo, which highlights the financial challenges faced by X,

NEW:

The current value of Twitter (X) is determined as 19 billion dollars.

One year ago Elon Musk paid $44 billion to purchase this platform.

Let that sink in. pic.twitter.com/PPrGLsOlny

— Republicans against Trump (@RpsAgainstTrump) October 30, 2023

At the time of purchase, Twitter’s value was $44 billion, comprising both debt and equity. However, Musk’s takeover added $13 billion in debt.

Moreover, Musk’s looser content-safety rules led to a 60 per cent drop in sales. On top of that, X is burdened with approximately $1.2 billion in annual interest payments on its debt.

Currently, Musk is trying to deviate the company’s focus from advertising and adopt a paid subscription model instead. Still, less than 1 per ent of users have subscribed to its monthly premium service, which will generate less than $120 million annually.