In Twitter’s stock compensation measures, employees are given shares in PayPal’s parent company. Musk also announced “radical changes”.
South African billionaire Elon Musk is known as the owner of the car brand Tesla and the rocket company SpaceX. Patrick Pleul
A tech billionaire Elon Musk bought the social media service Twitter in October of last year for more than 40 billion euros. In an e-mail sent last Friday, the billionaire stated to his employees that the value of the company was less than half of the purchase price. Reported about it New York Times (NOW).
NYT received an email meant for employees to read. The message announced the company’s new share compensation measures. In practice, Twitter employees are given shares in X Corporation, the parent company of online payment service PayPal, worth less than $20 billion. Employees are given permission to sell shares every six months.
Musk also said in the email that Twitter has been 4 months away from running out of money.
Radical changes
Based on the email, “radical changes” are also coming to the service. Musk tweeted on Tuesday that future changes will limit the operation of bot accounts.
If you don’t see the embed, you can watch it from here.
As of April 15th, only verified accounts are recommended for users. Answering surveys also requires account verification. Account verification costs 8 euros per month.
A captain does not leave a sinking ship
The billionaire was ultimately optimistic in the message, stating that Twitter could be worth more than $250 billion in the future.
The company’s result has weakened due to Musk’s ownership. One reason for the weak result is the service’s problems with advertising revenue. Back in December, the service made a loss of 4 million dollars a day.
With the change of ownership, Twitter became a private company and left the stock exchange.
Recently, Twitter has laid off a lot of its staff, and announced that it will cut costs by $3 billion this year. The company’s new communication model is to automatically respond to journalists with poop emojis.
It remains to be seen whether the cost cuts, share distribution, new communication model and layoffs will help raise the company to a value of 250 billion dollars, or whether these are sales pitches to find “someone stupid enough” to continue.