New Delhi: Elon Musk made headlines with his audacious $44 billion acquisition of Twitter, renaming it ‘X’. Fast forward to today, and the company’s value has plunged to just $19 billion, leaving investors and employees astounded.
Recent revelations unveil an intriguing twist in the story. While Musk had initially touted a rosy $20 billion valuation at the time of the acquisition, reality has proven otherwise. It’s not just the investors who are questioning the lofty price tag; even Musk himself admitted to overestimating Twitter’s worth in an email to his team, likening it to an “inverse start-up.”
Under Musk’s leadership, ‘X’ has witnessed seismic changes. A staggering 80% of the workforce, around 6,000 of 7,500 employees, either left or were replaced, marking a significant internal overhaul. Musk’s influence is palpable in the revamped verification process and content moderation rules, ushering in a new era for the social media platform.
Intriguingly, the stock price hasn’t mirrored the company’s plummeting value, possibly due to changes in the number of shares outstanding and the Board of Directors’ valuation methodologies. Musk’s unique position as both chairman and board creator adds a layer of complexity to the situation.
As ‘X’ employees receive new stock grants, they are offered an attractive deal at $45 per share, slightly below the $54.20 per share Musk initially paid. These grants, in the form of restricted stock units, vest over time, allowing employees to reap the benefits once they mature.
The ‘X’ story is a captivating tale of ambition, transformation, and valuation rollercoaster that keeps us all on the edge of our seats.”
During a recent conference call with bankers in October, Yaccarino shared some exciting updates. She revealed that revenues in the third quarter had increased by a robust high-single-digit percentage when compared to the previous quarter. What’s even more thrilling is her vision for the future. Yaccarino expressed her optimism about X, which boasts an impressive 245 million daily active users, potentially becoming profitable as early as 2024.
Meanwhile, Elon Musk has been boldly championing the transformation of X into an “all-encompassing app” that promises to unlock new revenue streams through innovative features such as shopping and seamless payment solutions. The company has been on an impressive roll lately, introducing audio and video calling, offering a beta version of a groundbreaking hiring service, and even set its sights on launching a cutting-edge news wire.
Musk has laid out a bold mission for X, intending to compete head-to-head with tech giants like Google’s YouTube and Microsoft Corp.’s LinkedIn. With a combination of visionary leadership and a rapidly evolving product lineup, the future for X looks incredibly promising.
