Pour Elon Musk, its investment in Twitter is not yet synonymous with profitability. The contractor is currently estimating the value of the social network to 20 billion dollars, once morest 44 five months ago at the time of its acquisition, according to an internal document consulted by several American media.
The internal letter to employees concerned the incentive within the San Francisco group and the allocation of shares of X Holdings, an umbrella company Twitter since its takeover at the end of October. The share grant program values the platform at 20 billion dollars, close to the capitalization of Snap (18.2 billion), parent company of Snapchat, or the social network and creative site Pinterest (18.7), all two sides. Solicited via the email address dedicated to the press, Twitter generated an automatic response containing only an emoji in the shape of a pile of excrement.
A company for a time on the verge of bankruptcy
In the internal document, Elon Musk justifies the brutal contraction of the valuation by the financial difficulties experienced by the group, a time on the verge of filing for bankruptcy, according to him. “Twitter was set to lose $3 billion a year,” Elon Musk wrote in a message posted to the platform on Saturday.
This figure is explained, according to him, by a loss of turnover of 1.5 billion dollars and maturities of debt of an equivalent amount. “But now that advertisers are coming back, it looks like we’re going to break even in the second quarter” of 2023, said Twitter’s chief executive and majority shareholder.
Since taking over, Elon Musk has passed the group’s workforce from 7,500 to less than 2,000 employees resorting to successive waves of dismissals. In the internal document, he says he foresees “a difficult but clear path” towards a valuation of the group around 250 billion dollars, but without mentioning a deadline. The man who is also at the helm of Tesla and the aerospace group SpaceX announced that Twitter would open a window every six months allowing employees of the social network to sell their titles, which are no longer listed.