The Guardian newspaper revealed that the billionaire owner of the company, Elon Musk, currently estimates the value of Twitter at $ 20 billion, after the estimated value of the giant platform was $ 44 billion when he acquired it 5 months ago, thus losing more than $ 20 billion in the value of its shares.
The internal letter to employees relates to profit sharing within the San Francisco-based group, and to the allocation of shares in X Holdings Inc., which oversees Twitter, since its acquisition at the end of October 2022.
The stock distribution program values the platform at $20 billion, which is close to the capital value of Snap, the parent company of Snapchat ($18.2 billion), or Pinterest ($18.7 billion), both of which are Two companies are listed on the stock exchange, according to Agence France-Presse.
The agency indicated that it had asked questions via the email address designated for the press, but Twitter’s response came via an automatic response that included only an emoji in the form of a poop pile.
The British newspaper, The Guardian, said that the sharp decline in the value of the company came after a turbulent acquisition by Musk, as several major advertisers withdrew from the platform, and the investment company Fidelity, a large source of money with which Musk bought Twitter, announced a reduction in the nominal value of their shares. by 56%.
Twitter’s valuation measure was based on Musk’s offer to give the employees stock, according to Platformer, which was first to report the information in the memo.
Giving shares to employees is generally a way to motivate them, and an opportunity to buy shares that cannot be sold until a specific time, in contrast to stock options, which – depending on the conditions applied – can be more flexible.
The goal is to encourage employees to reach a specific valuation at a certain point in time so that they can sell their shares for money.
In this regard, Musk announced that Twitter will open a window every 6 months to allow employees of the social network to sell their shares that are no longer listed.
Since assuming the presidency of the platform, Musk has reduced the group’s workforce from 7,500 to less than 2,000 employees, by resorting to successive waves of dismissals.
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