A year following Elon Musk’s acquisition of X, previously known as Twitter, the platform’s valuation has nosedived from $44 billion to $19 billion.
This info comes from employees with company shares and was reported by The Verge.
Right after the purchase, Musk introduced Restricted Stock Units, or RSUs, for the employees.
These are special shares they can sell. According to internal documents, each of these shares is now worth $45.
This represents a 55% fall since the company’s value at the time of acquisition.
The decline doesn’t stop at the share price. The company is also making less money from ads. A recent study reveals that X’s advertising revenue has fallen by 60% this year.
This was compared to the same period last year, and the details were published by Reuters.
Moreover, the company has made big staff cuts. Almost 75% of the workforce has been laid off. So, the current staff size is around 1,500 people.
Background – Musk’s X Faces Steep Decline
This decline in X’s valuation and operations poses questions about its future under Musk’s leadership.
Musk is known for turning Tesla and SpaceX into major successes. However, X seems to be a different story.
The falling stock price, shrinking ad revenue, and layoffs are concerning signs. They suggest that Musk’s strategy for X hasn’t paid off yet.
In the past, X was a popular platform for public discourse, news, and social interaction. Now, it struggles to maintain its financial and social impact.
If these trends continue, X may face even more challenges. It may need a new strategy or even another acquisition to revive its fortunes. So, the next year could be crucial for X and its stakeholders.
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