Twitter’s new owner and CEO Elon Musk has reportedly sent an email to employees offering them stock grants at approximately $20 billion valuation, according to a person familiar with the matter who spoke to the Information.
That shows a significant drop in Twitter’s value since it’s less than half of the $44 billion Musk paid for the acquisition of the social media company in October last year.
After his takeover, Musk has rolled out many profound changes to Twitter in an effort to grow its revenue. The company now requires users to subscribe to its paid Twitter Blue plan, which has been recently expanded globally, to get a verification badge and access various features like tweet editing, sharing much longer tweets, and two factor authentication via SMS. Musk also announced a general amnesty for suspended accounts and laid off nearly half of Twitter’s workforce.
Many advertisers stopped their campaigns on Twitter citing concerns over the platform’s content moderation changes. According to a person familiar with the company’s ad business, Twitter lost more than 500 of its top advertisers following the $44 billion acquisition.
Musk previously blamed this ‘’massive drop’’ in Twitter revenue on “activist groups pressuring advertisers’’. At a Morgan Stanley investor conference that took place earlier this month, he attributed the decline to ‘’political’’ reasons and the cyclical nature of the advertising business.
However, during the same conference, the billionaire said that Twitter had a ‘’shot’’ at being cash flow positive next quarter.
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Meanwhile, in an effort to boost its revenue and lure back advertisers, Twitter has offered various advertising incentives over the last few months, and eased its ad policies by allowing more cannabis-related and political ads on its platform.