For the record, Twitter's current CEO, Elon Musk bought the social media platform amid an overhyped frenzy last year at $44 billion. However, the company's value is being reported to have dropped to less than half of what Musk paid for it.
According to a report from The Information, Musk recently doled out stock grants to employees which valued Twitter at roughly $20 billion.
Citing internal communication, The Wall Street Journal also reports that the employee stock awards are based on putting the company's net worth at approximately $20 billion.
Recall that when Musk originally signed the contract under the looming spectre of a messy legal battle, multiple market watchers and analysts remarked that the Tesla CEO has vastly overpaid for it.
Twitter hasn't really had a profitable run in years, and turning its fortunes over was never going to be an easy task.
On top of it, high-level exits and massive layoffs, complemented by aggressive internal restructuring and a botched Twitter Blue launch, haven't really set the cash registers ringing.
The $20 billion valuation sounds alarmingly low, yet not entirely unexpected, since Musk himself has previously flagged bankruptcy fears for the platform.
The Twitter CEO, who currently runs the company as some sort of inverse startup with a controversial hardcore performance approach, has some ambitious plans.
Musk has reportedly told Twitter employees that he can "see a clear, but difficult, path to a $250 billion valuation," which would mean the employee stock awards would essentially get more than a 10-fold jump if that goal is realized.
But achieving those lofty financial goals won't exactly be easy.
Twitter's advertiser exodus is well-known, and all those dreams of turning it into the go-to spot for creators is a far-fetched dream too.
But the situation doesn't appear to have improved ever since Musk got desperately irked about the whole situation and went beefing with Apple.
According to a Vox report, more than half of Twitter's top 1,000 advertisers before the purchase ceased putting ads on the platform as of February 2023, and they're not particularly inclined about making a return.
Plus, Musk also had high hopes for the Twitter Blue subscription service, but that hasn't turned out like a fairytale, either.
Data compiled by Sensor Tower reveals that in the three months since its launch, Twitter Blue has only collected $11 million from mobile sign-ups.
Under Musk’s ownership, Twitter has undergone some serious changes.
After the purchase, Musk’s first move involved firing Twitter CEO Parag Agrawal and other top executives, as well as implementing sweeping changes like taking the company private, reinstating controversial user Andrew Tate and former President Trump, and laying off thousands of employees.
Musk also tweeted that the user verification process would undergo policy changes to make it harder for impersonation accounts to crop up.
For example, someone made a spoof Elon Musk Twitter account, which was eventually suspended.
Another massive change Musk instituted was the subscription-based model users follow to receive a blue checkmark.
Before Musk bought Twitter, an account received a blue “verified” checkmark if it belonged to notable, authentic, and active people.
Now, users can pay an $8 monthly fee to obtain and keep a blue checkmark, regardless of their popularity, wealth, or status.
Twitter’s financial future is still uncertain, especially since the platform relies heavily on revenue from advertisers.
If sponsors choose to pull back on their contributions, the platform could be doomed.
It would be much more difficult for Musk and his employees to maintain the platform or make crucial updates.
The company is subject to other financial difficulties as well.
In November, Musk shared with his Twitter employees that bankruptcy is “not out of the question,” and he is not sure how long the company will last in its current financial situation.
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