Elon Musk bought Twitter for $44 billion. Now its value is only $19 billion

Elon Musk's company, X, formerly known as Twitter, is facing a major loss.

Musk bought Twitter for a significant sum of $44 billion, to be exact. However, its current value has significantly decreased to only $19 billion.

This marks a decrease of over fifty percent in just a year.

What

• X provided its employees with stock grants, a special form of reward that can be utilised or sold at a later time.
• These grants are currently valued at $45 each, with the potential for employees to earn them gradually over time.
• Despite the significant decrease in X's overall value, the price of these stock grants did not decrease proportionally.
• The price of X's shares experienced a drop that was not as substantial as the company's total worth.

Big changes by Elon Musk

• A substantial reduction in the company's workforce, with over 80 percent of its 7,500 employees being laid off, as per New York Times.
• Revisions to the platform's verification process and content policies, altering what individuals can express on the platform.
• A noticeable decline of nearly 60 percent in the revenue generated from advertisements, a vital component of X's income.

In order to acquire X, Musk also accumulated billions of dollars in debt.

Despite the considerable challenges, Elon Musk remains optimistic about X's prospects. He envisions X transforming into an "everything app" with an array of features, including dating services and job recruiting. Musk holds firm in his belief that X has the potential to achieve almost anything.

Linda Yaccarino, CEO of X, also offered encouraging words to the employees, urging them to remain steadfast in their vision for the company.

She advised them not to be discouraged by those who fail to recognise their aspirations for X, emphasizing their determination to steer it toward success, despite its decreased valuation.