Elon Musk overpaid for Twitter within a year the companys

Elon Musk overpaid for Twitter: within a year, the company’s price fell from $44 billion to $19 billion

A year after Elon Musk bought Twitter for $44 billion, he revised the company’s value to $19 billion. Employees of the company now known as X received shares based on that valuation, according to internal documents. or $45 per share. This event was the first official confirmation of the company’s value since its acquisition.

    Image source: X

Image source: X

When Musk became the owner of Twitter, many analysts and experts thought the company’s $44 billion valuation was too high. According to internal documents, Musk himself now values ​​the company at just $19 billion. This data is based on internal documents released to the press through the publication’s sources The edge. They point out that the fair market value of the stock is determined by X’s board of directors. It is worth noting that Musk, as CEO, has not yet fully formed this.

Since purchasing Twitter, Musk has intended to implement an employee compensation system similar to that of his other company, SpaceX. At SpaceX, for example, employees have the opportunity to regularly sell part of their shares to external investors.

The type of stock compensation that X offers its employees is called Restricted Stock Units, or RSUs. These RSUs are “earned” over a four-year period and only become taxable income after a specific “liquidation event,” such as an initial public offering or sale of the company, according to internal documents.

Until recently, X’s employees were in the dark about the company’s true value. However, even Musk’s current valuation is questionable: one of the major investors, Fidelity, assumes that the value of X has fallen by 65% ​​compared to the time of the takeover.

The loss of value of companies Whether Musk can stabilize the situation or whether the current trend will continue remains to be seen.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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