Twitter is now worth $19BN from $44 billion of purchase

Information reaching Kossyderrickent has it that Twitter is now worth $19BN from $44 billion of purchase.

But in February, Musk once again reduced the staff to less than 2,000 employees.

The billionaire also tried to save money by bidding off several items from the office’s kitchen and workstation online.

Among the items listed for sale from the San Francisco office were valuable luxury items, such as a $20,000 espresso machine, a $10,000 vegetable dryer and a $17,000 braising pan. An ‘@’ shaped planter was also up for grabs, along with chairs, tables and kegs.

Twitter’s former Head of Trust and Safety said working for Musk was the ‘hardest experience’ of her career. 

‘There’s more emotion behind his decisions than I would have maybe expected before I met him,’ said Ella Irwin.

Over the summer, Musk posted to X that this company was, ‘still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load.’. 

Workers will then be able to sell and cash in on their privately-held stocks every six months.

Doing so, he said, would allow employees to have ‘liquid stock, but without the stock price chaos and lawsuit burdens of a public company.’

Since his takeover, staff at the company shrunk from more than 7,500 people to under 2,000.

Immediately after taking over the company, Musk told half of the social media giant’s workforce that they would be let go in an email to their personal accounts. 

However, many did not learn that their positions were terminated until they tried to sign in to company systems, like Slack or email, and found they no longer had an account.

At the time, Musk defended the decision to fire 3,700 people, saying: ‘There is no choice when the company is losing over $4mn/day.’

Per this valuation, the awarded stock equity value was pegged at $45 per share. The stock allocation to employees is in fulfillment of one of Elon Musk’s promises to model X’s compensation plans after that of SpaceX. In this model, employees of the firm are allowed to own a share of the company which they can regularly liquidate.

Despite the allowance, it is worth noting that the employee stock offerings are restricted and these shares can only be earned over 4 years from the point they were issued. This model is similar to “vesting” in crypto and it is instituted to protect the shares from being excessively devalued in a short period.

This massive devaluation of X models the general market turmoil and how much of a loss X is for Elon Musk and other top investors in the firm including Binance’s Changpeng “CZ” Zhao.

Since taking over the firm, Elon Musk has made several changes to X including its corporate structure and monetization plans. Besides hiring Linda Yaccarino as the CEO, Musk also made subscriptions to X Premium mandatory to obtained verification marks.

While this move was initially criticized, X has gained popularity for it, especially with the added features associated with users who secure the verification badges. 

Recently, Elon Musk and Linda Yaccarino unveiled plans to turn X into a financial hub such that in a year, users will not need a bank account. This grand plan to venture into Fintech has been teased right from when Musk acquired the firm and with it on its way to becoming a reality, crypto insiders are predicting that a possible integration of non-custodial crypto wallets may also be a part of the plan.