- Elon Musk purchased the social media platform Twitter a year ago for $44 billion, including $33.5 billion in equity.
- The current valuation of the platform, now called “X,” has dropped significantly to $19 billion, which is almost 55% less than what Musk paid for it.
- Musk restructured the company by laying off around 7,500 employees worldwide, modifying content moderation guidelines, and introducing a paid verification procedure.
- The company’s advertising revenue decreased significantly, leading to negative cash flow and a heavy debt load.
- While the reduced valuation may benefit employees by making stock options more affordable, the company will still need to regain its lost value for its employees to see a significant financial benefit in the long term.