Elon Musk has finally broken his silence on granting stock awards to his employees, stating that they will receive stock awards based on a valuation of around $20 billion.
That is less than half of the $44 billion for which Musk acquired the microblogging platform, the Wall Street Journal reports.
“I see a clear but difficult path to a >$250 billion valuation,” he told his employees in an email.
He said that Twitter will be transformed so that the company “can be viewed as a startup in reverse”
In a separate email, Twitter told its employees that it is offering new stock awards to employees that will vest after six months.
In about a year, the company will offer a liquidity event where they can cash out some of those shares.
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The new awards will vest over four years, according to the Journal.
Twitter spent nearly $630 million on stock-based compensation in 2021.
The company had more than 7,500 employees and is now down to about 2,000 after Musk laid off thousands in several rounds of layoffs.
Despite Elon Musk’s efforts to monetise Twitter, the microblogging platform reported a massive 40 per cent drop in revenue and adjusted profit for December 2022.
Several advertisers have turned away from the social media platform after Elon Musk’s takeover,” the Wall Street Journal reported, citing people familiar with the matter.
In an update to investors, Twitter reported a 40 per cent drop (year-on-year) in both revenue and adjusted profit for December 2022.
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The company recently made a first interest payment to the banks that loaned Musk $13 billion to acquire Twitter.
Musk had predicted in November that Twitter could go bankrupt.
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