According to The Information, Elon Musk, the CEO of Twitter Inc, has reportedly offered the company’s employees shares at a nearly $20 billion valuation. This comes after Musk sent an email to Twitter staff, as confirmed by an inside source.
Valuation Less Than Half of the Purchase Price
The valuation of $20 billion offered by Musk is less than half of the $44 billion he paid to acquire the social media platform, indicating a decline in Twitter’s value. Despite the lower valuation, Musk remains optimistic about Twitter’s future prospects.
Twitter did not immediately respond to a request for comment sent by Reuters regarding Musk’s offer to employees. It remains to be seen how the company will react to this new development.
Musk’s View on Twitter’s Financial Performance
In December of last year, Musk shared his thoughts on Twitter’s financial performance. He stated that the social media platform was on track to be “roughly cash flow neutral” in 2023. This was due to significant advertisers cutting back on spending on Twitter after the billionaire’s buyout.
Overall, Musk’s offer of shares to Twitter employees at a $20 billion valuation is a significant development for the company. It remains to be seen how this will affect Twitter’s future and financial performance.