Elon Musk, the billionaire entrepreneur who made headlines last year with his $44 billion acquisition of Twitter, has suffered a significant loss in his investment. According to reports from tech news outlets Platformer and The Information, Musk has slashed the valuation of Twitter by over half, estimating its worth at just $20 billion.
Musk’s acquisition of Twitter was marked by a long and eventful battle with the company’s management, featuring multiple twists, threats, and public insults. Despite analysts’ warnings that the platform was not profitable and lagged behind its competitors in advertising revenue, Musk went ahead with the purchase.
However, just over five months after becoming the “Chief Twit,” Musk has reduced the platform’s valuation significantly. The new valuation is reportedly based on equity grants to employees, and could potentially be a bargain for them in the event of a rebound in the company’s worth.
While the loss is significant, it is worth noting that startups often offer stock options at low valuations to attract talent. If Twitter’s valuation were to rebound, the lower valuation could prove to be a boon for its employees. Nonetheless, the news will be closely watched by investors and analysts alike, as they try to gauge the future prospects of one of the world’s most popular social media platforms under Musk’s leadership.