Twitter owner Elon Musk may have let the cat out of the bag about Twitter’s current total worth. According to a Sunday report from The Wall Street Journal, Musk told employees some have received stock rewards based on a $US20 ($28) billion valuation. Just a reminder, Musk bought the platform last year for $US44 ($61) billion. At the time he first made that privatization offer, he called the sum “a fair price.”
Musk reportedly called Twitter an “inverse startup” and said there was a “clear, but difficult path” to seeing a more than $US250 ($347) billion valuation, eventually. Earlier this month, Musk claimed to the audience at a tech conference hosted by Morgan Stanley that the company would be making a profit in just a few months time. It’s a tall order, considering that in January the Twitter and Tesla CEO was trying to raise an additional $US3 ($4) billion from investors. That’s on top of the nearly $US13 ($18) billion in debt already put on the company to finance Musk’s buyout. The Twitter owner has been caught up in multiple fights over not paying rent on his office spaces around the world.
It’s unclear how many employees have received these stock options, and how much stock each may have gained. Like many other tech companies, Twitter had previously offered stock grants in employee compensation. The company spent $US630 ($875) million in stock compensation back in 2021, according to regulatory filings, though of course that was back when Twitter was a private entity and it was easier to find buyers.
Gizmodo reached out to Twitter for comment, but the company responded with a (poop emoji). That’s how Musk plans to respond to every media request from now on, no matter if the report is about.
According to the report, employees will be able to cash out on their equity during a liquidity event that is supposed to take place around one year from now.
The company has gone through some radical changes over the past six months since Musk took over. His paid-for verification scheme ended up costing the company much more in advertising than it’s gained so far in subscription fees.
Other than the incredibly reduced headcount and slashed employee benefits, the site has also gone through a shift in terms of culture. Despite the company’s claims it’s cracking down on violent speech, the amount of hate speech has reportedly skyrocketed since the company went private. The company has also been hit with reports that child sexual abuse content has continued to spread on Twitter despite Musk’s constant claims to the contrary.