The frog's mouth risk, it's true, Elon Musk needs it, and you might as well have if you hadn't bought Twitter. The biggest mistake you made was buying Twitter too high.
| Elon Musk |
X which continues to incur losses
According to a report by The Verge on October 30, 2023, X, formerly Twitter, was valued at $19 billion. That's a 55% drop from the $44 billion Elon Musk paid the company in October 2022.
One of the most talked about things last year was Elon Musk's acquisition of Twitter. Elon Musk was making daily headlines that he was going to buy Twitter, now known as X, but he didn't, he didn't have that much money, he didn't have a loan. In one way, he also bought Twitter for $44 billion in October last year.
Apart from the acquisition, he also implemented many changes like firing thousands of jobs, midnight layoffs, adding new features, premium subscriptions, restrictions, etc. It is also worth noting that he changed every aspect of Twitter and changed the name of the Twitter site to X at one point.
A year after Musk bought the microblogging site, the site's value has more than halved. Elon Musk has suffered huge losses on this investment. The site, which was acquired in October 2022 for $44 billion, is now valued at approximately $19 billion. Values have fallen by almost half, or more than $20 billion.
The report notes that the $19 billion valuation is based on the price at which equity in the company was issued to employees. Since this estimate is based on internal documents and is not independently verified, the value of the company may be even lower.
A number of factors can cause the value of X to decrease, including,
A general decline in the stock market, especially in the technology sector.
Concerns about Musk's vision for X, including his plans to loosen content review rules.
Loss of advertiser confidence in X
A decline in user engagement.
It's still too early to tell what the long-term impact of Musk's X franchise will be. However, the decline in the company's value shows that investors are increasingly worried about its future.