Musk’s $44-bn X buy now worth only $19 bn
Social media platform saw a massive 55% drop in value from original price Elon Musk paid for it last year
Value fall
- X employees get company shares at $45 a piece
- New CEO says X will be profitable by early 2024
San Francisco: X Corp has seen its valuation drop to $19 billion - less than half of which Elon Musk bought the social media platform for $44 billion last year.
Employees at X (formerly Twitter) were awarded equity in the company at a valuation of $19 billion, or $45 per share, according to internal documents accessed by media. That price is a massive 55 per cent drop to Musk’s original purchase price.
“The fair market value per share is determined by the Board of Directors based on a number of factors in a manner that complies with applicable tax rules,” according to the documents.
The type of equity X is giving employees is called “restricted stock units”, or RSUs. These RSUs are earned over a period of four years from their grant date and require a “liquidity event,” such as an IPO or sale of the company, to be taxed as income, according to the report.
The social media platform previously offered employees stock in March at a $20 billion valuation.
