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Twitter Valuation 2023: Elon Musk, one of the richest people in the world, bought Twitter in October last year after several months of tussle. This was the most talked about deal of last year. Since then, Elon Musk has taken several measures to bring the company to profitability and reduce costs, but it seems that his efforts have not been successful so far. Due to this, the value of the company (Twitter Value) has decreased rapidly during the last few months and Elon Musk himself has accepted this fact.
Now this is the only value
According to a report by The Information, Twitter CEO Elon Musk has valued the company’s employee stock grants at around $20 billion. This report came out on Saturday. Last year, when Elon Musk made a deal to buy Twitter, then the value of the social media company was estimated to be more than its double. Elon Musk paid $44 billion to buy Twitter.
loss can be so much
According to the report, Musk estimates Twitter’s revenue to be less than $0.3 billion this year. At the same time, the company has a debt of about $ 13 billion. After the deal, Musk had said that Twitter was losing $4 million every day. Citing this, he laid off on a large scale and to reduce costs, about 70 percent of the employees were shown the way out of the company.
Decreased advertising revenue
Twitter’s troubles have only increased after being bought by Musk. Musk himself has told this that after his takeover, many advertisers have either distanced themselves or they have reduced the expenditure on advertisements. According to a report, during December 2022, advertisers reduced ad spend on Twitter by 71 percent. Earlier, during the month of November 2022, it had declined by 55 per cent as compared to the year before.
Musk has done these measures
Advertisement has been the main source of revenue for the social media company Twitter. Although many big brands have moved away from Twitter after Musk’s takeover. However, later Musk has been able to bring back many advertisers by giving huge discounts. Apart from this, he has also made some other changes like paid verification, so that Twitter’s earnings can be increased.
read this also: How will be the last week of the financial year? Know what will decide the move!
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