Guwahati: Twitter’s current value now at $20 billion

Elon Musk has put the current value of Twitter at $20 billion, less than half the $44 billion he paid for the social media platform five months ago, according to an internal email seen by American news media.

The compensation plan values the platform at $20 billion, slightly more than that of Snap ($18.2 billion), parent company of Snapchat, or of social network and creative website Pinterest ($18.7 billion), both of which are publicly traded.

The email to employees dealt with a new stock compensation programme in the San Francisco-based company and the attribution to employees of stock in X Holdings, Twitter’s umbrella company since Musk purchased it in late October.

In the internal email, Musk describes the brutal contraction in Twitter's value. He says the platform faced such grave financial difficulties that at one point it was on the verge of bankruptcy.

He cited a revenue drop of $1.5 billion a year and a debt-servicing burden of the same amount, leaving it with “only 4 months of money”.

Musk, Twitter’s majority shareholder, added simply: “Extremely dire situation.”

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