Jakarta (Reportase One) – The richest man in the world who owns the Twitter social network, Elon Musk, said on Monday that Twitter’s current valuation had reached US$20 billion (Rp.303 trillion).
This figure is far below the value of Twitter’s market capitalization before being bought by Musk in October 2022, which at that time reached US$44 billion (Rp.668 trillion).
Musk’s statement was conveyed via electronic mail (e-mail) to Twitter employees on Friday last week which was reiterated by the New York Times on Monday.
According to the New York Times, in the e-mail Musk reminded his employees that Twitter was facing financial difficulties, even in the next four months it threatened to run out of money.
To that end, Musk asked the social media company to take radical changes, including laying off employees and tightening their belts, to avoid bankruptcy.
“Twitter is being reshaped,” Musk wrote, noting that the social media company could fall back to being just a start-up.
Twitter’s valuation has continued to fall since Musk launched a major overhaul of the social media company.
Also read: Twitter is experiencing link and image problems
In October 2022, Musk acquired Twitter privately, which made him unable to be asked to transparently disclose the financial condition of this social network.
Musk admitted that Twitter’s revenue was reduced because advertisers were busy leaving this platform after being bought by him. Musk even stated that Twitter was threatened with bankruptcy.
Musk is also reportedly going to offer a stock compensation program in which Twitter employees will receive shares of X Corporation, which is the business arm that Musk used to acquire Twitter.
Twitter also plans to introduce a program where employees can sell shares every six months.
Despite facing acute financial problems, in the e-mail Musk believes that one day Twitter’s valuation will reach US$250 billion (Rp. 3,795 trillion).
Not only in terms of finance, Twitter also dropped in terms of the number of users.
According to data from the Statista page, as of December 2022, Twitter has 368 million monthly active users worldwide.
This figure is projected to fall to 335 million in 2024 or five percent lower than in 2022.
Also read: Elon Musk offers share grants to Twitter employees
Also read: Twitter Blue subscription is now available worldwide, how much is it?
Reporter: Jafar M Sidik
Editor: Yuni Arisandy Sinaga
COPYRIGHT © BETWEEN 2023