The value of X, the website that was formerly known as Twitter, is less than what Elon Musk spent for it a year ago.
A source with knowledge of the situation estimates that the company is worth $19 billion, or $45 per share, based on restricted stock units granted to employees. Musk paid $44 billion to acquire Twitter Inc. a year ago.
The majority of Twitter employees were let go or quit after the acquisition. Musk rebranded the business as X, altered a few of the content guidelines, and saw a decline in advertising income of more than half.
Internal documents state that on 30 October, X employees received shares in the company at a price of $19 billion, or $45 per share, according to a report by The Verge.
That price is a 55 per cent discount to Musk’s original purchase price, per the documents, which note that “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.”
Additionally, Musk has made no secret of his intention to transform X into a "everything app" with the ability to accept payments and conduct commerce.
The startup revealed ambitions to develop a news wire, launched audio and video calling earlier this month, and has a test employment service. Musk informed staff members that X intends to take on PR Newswire from Cision, Microsoft Corp.'s LinkedIn, and Google's YouTube.
Chief Executive Officer Linda Yaccarino presented concepts for X's new offerings, such as the introduction of advertising tiers, to bankers this month at a meeting to discuss the company's financial plan.
Musk has previously shown interest in taking X public, but the company's sharp decline in valuation may make it challenging.
