Elon Musk’s Twitter acquisition has been a financial blunder, and the numbers prove it Since taking over the social media platform in October 2022 in a $44 billion deal, Twitter has lost over half of its value, the billionaire admits.
According to the New York Times, Elon sent out a company-wide memo providing the most current valuation of Twitter, which the publication was able to obtain a copy of. He admitted that the company is now worth $20 billion, which is $24 billion less than it was worth last year.
However, Elon says that things aren’t as bad as they appear. He claims Twitter would be in worse position had he not bought the company, alleging it would’ve run out of money and had to declare bankruptcy within four months.
He also defended the various changes he’s made to the company in the last few months, admitting they were “radical.”
Elon previously faced backlash for introducing a new paid version of Twitter, which provides users multiple perks (like a verification checkmark) for a monthly fee. He’s also loosened the guidelines of what can be said on the platform in an effort to make it more open for free speech.
Elon even made headlines in January for selling old Twitter memorabilia to raise funds. A variety of items were auctioned off, including electronics, furniture, kitchen appliances, and even a neon Twitter bird logo.
Moreover, the billionaire has reportedly fired more than half of Twitter’s employees in a bid to save costs. This included many top-level executives, who were let go the same day Elon officially took over as CEO. However, Elon and Twitter are now facing a lawsuit over the mass lay-offs. Twitter is being accused of not giving proper notice of the layoffs, though the billionaire has denied the claims.
In January, Twitter was hit with another lawsuit over unpaid rent at the company’s headquarters. Twitter reportedly owed $136,260 in backdated rent, highlighting the company’s financial strife.
Elon hasn’t been shy to discuss Twitter’s financial situation. In November, he claimed the company is losing $4 million per day.
"Regarding Twitter's reduction in force, unfortunately there is no choice when the company is losing over $4M/day,” he tweeted.
Elon announced his plans to buy Twitter at the beginning of 2022, before attempting to back out in July, alleging the company was feeding him misinformation.
Twitter went on to sue him over breach of contract, before Elon agreed to buy the company at the original price. He acquired it in October and has been acting as a temporary CEO since.
Sources: New York Times, TMZ,