Musk: How Elon Musk may have lost $24 billion in Twitter value in five months – Times of India

Elon Musk purchased Twitter for $44 billion in October last year. After the takeover, Musk said that top advertisers slashed their spending on the social-media platform as the company struggled with finances. Reports now suggest that the billionaire has now put a value on the company and informed about it via an email.
Report by The New York Times claim that Musk recently sent an email to the company’s employees saying that Twitter is now worth about $20 billion. This is significantly less than the $44 billion that he paid to buy the social media company last year.
The email was sent to employees to announce a new stock compensation program, the reports said. Musk also said that “radical changes”, including mass layoffs and cost cutting, at the company were necessary to avoid bankruptcy and streamline operations. “Twitter is being reshaped rapidly,” Musk said.

Musk had spoken a lot about how the platform lost advertisers that led the company to grave financial difficulties and even on the verge of bankruptcy. “Twitter was trending to lose nearly $3B/year,” Musk was quoted as saying.
Stock compensation program
Musk’s email was reportedly about the new stock compensation program, according to which Twitter employees will receive stock in X Corporation. This is the holding company Musk used to buy Twitter. The billionaire also said that he believes Twitter could someday be worth $250 billion.

The New York Times report also said that Twitter will plan to allow employees to sell the stock every six months, a practice that is also followed at SpaceX, Musk-owned space equipment manufacturing company. The sales of private stock would allow employees to have “liquid stock, but without the stock price chaos and lawsuit burdens of a public company,” Musk was cited as saying.
Last year in December, Musk said that Twitter is on track to be “roughly cash flow break-even” in 2023.