Musk acknowledges Twitter failure, but attempts to boost morale with promotions

Elon Musk, the CEO of Twitter, has offered shares to his employees as a reward but valued the company at $20 billion, more than two times lower than its $44 billion acquisition price in October 2023.

This marks the first time the billionaire has acknowledged the significant drop in the company’s value following the deal. The sources also reported that Twitter’s debts had reached $13 billion.

In February, Musk claimed he saved Twitter from bankruptcy. However, about 500 advertisers reportedly left the company after his arrival, and the annual revenue dropped by 40%.

Musk purchased Twitter in October 2022, spending $21 billion of his own funds, with the remaining amount provided by a group of banks secured by shares in Tesla.

Following the acquisition, Musk announced that he would lay off around 50% of the company’s employees.