2023-10-31 19:38:39
After buying Twitter in October 2022 for $44 billion, Elon Musk declared this Monday, October 30, 2023 that he was revaluing the application at $19 billion.
The old Twitter would have lost almost half of its value. In any case, this is what documents relating to share allocations to employees revealed yesterday, Monday October 30. This would correspond to a drop of 55% compared to the 44 billion dollars invested by Elon Musk for the purchase of the application, a year ago.
On the other hand, the mutual fund company, Fidelity, which contributed more than $300 million to the billionaire’s takeover of Twitter, revealed that, in its opinion, the platform is worth actually 65% less than last year.
In addition to being slightly lower than Musk’s estimates at the start of the year, who was targeting no less than 20 billion for a new valuation of the platform, boss.
X, a bad deal from the start for Elon Musk?
The takeover of the old Twitter for 44 billion dollars, following a long standoff, created a buzz. In fact, users knew full well that this price was far too excessive.
While Elon Musk seemed confident, that deal has since deteriorated due to a major stock market downturn, which hit tech companies hard.
By July 2022, Twitter’s stock price had fallen from $54.20 to $45. Since then, Elon Musk’s management of the application has not been unanimous.
Poor management of the pointed platform
Since Musk’s arrival at the head of X, many changes have been noted, starting with the resignation and dismissal of around 80% of the 7,500 employees. On the other hand, the platform verification process and content moderation rules have been changed.
Another alarming point is that since this summer, revenue, the company’s main source of income, has fallen by approximately 50% in the United States. With Elon Musk’s actions, X would now be in debt to the tune of billions of dollars to help pay for its acquisition.
To try to remedy this, Musk developed a new idea: including a monthly subscription fee of $8. A strategy that does not seem very promising, less than one percent of users responded favorably to the idea of taking out a subscription. He is now considering making access to X chargeable.
Elon Musk has never hidden his desire to completely transform the application. Still in this quest for monetization, X started charging new users a dollar for sending messages.
A fairly simple set of changes, but which does not delight users, starting with the change in the name and logo of the platform. The rest therefore promises to be complicated for the company.
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