Elon Musk’s X Reduces Employee Stock Valuation to $19 Billion
X, formerly known as Twitter, has informed eligible employees of stock grants at a reduced valuation of $19 billion, down from the previously estimated $20 billion. This comes a year after Elon Musk’s $44 billion acquisition of the social media platform. The tech mogul had previously expressed that he felt he had overpaid for the acquisition. Despite the reduction in stock valuation and the various changes Musk has made to the platform, he remains bullish about X’s future, with plans to transform it into an “everything app,” including payment processing and managing users’ financial activities.
Under Musk’s ownership, X has faced challenges, including a significant reduction in monthly active users (approximately 15%) and a decline in advertising revenue (up to 60%). The platform has also grappled with issues related to hate speech and misinformation. Musk’s strategies include reducing headcount by 80%, making changes to the verification system, and testing a $1 per year fee for users to combat bots.
As the owner of X, Musk continues to make significant changes and investments in the platform to shape its future and drive its growth in the competitive social media landscape.