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Elon Musk valued Twitter half as much as when he bought the social network

Date: June 4, 2023 Time: 01:09:33

Elon Musk has offered Twitter employees a stock reward based on a company valuation of $20 billion, The Information reported, citing a source.

This is half of what the entrepreneur paid when buying a social network last year. The media take this as Musk’s admission that the company’s value has fallen since the deal (although the price is still well above the public market valuation level of Twitter’s competitors).

Musk predicted that Twitter’s revenue this year would be less than $3 billion. As a result, it is 11 times higher than the estimated revenue, and this is taking into account the company’s debt of 13 billion dollars.

By comparison, according to Koyfin, Twitter’s closest digital ad competitors in the market, such as Snap, Pinterest and Meta Platforms, are just 4.5 times their estimated revenue valuation.

Earlier, Twitter announced that it would remove blue checkmarks from users who did not purchase a Twitter Blue subscription. The update will take place on April 1st. Elon Mas called the old verification program “deeply corrupt and meaningless.” He also compared it to the “system of lords and peasants”.

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.

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