X was valued at a total of $19 billion when shares were awarded to employees, report ‘Fortune’ magazine and the financial news agency ‘Bloomberg’. Musk paid approximately $44 billion for Twitter in October 2022.
Musk has since rebranded the platform and announced that he wants to turn X into an app with more features, including financial services, among others.
The platform has suffered a significant decline in advertising revenue since the takeover. Musk has stated several times that these are half lower than in the past. Many companies avoid X as an advertising platform because they fear a negative impact on their brand.
Musk is trying to cover the losses with revenue from subscriptions. He also took out loans for the acquisition of approximately $13 billion, which he estimates cost X approximately $1.2 billion per year in interest.