Elon Musk puts Twitter’s value at just $20 billion

Less than six months after buying Twitter for $44 billion, Elon Musk has put the current value of the company at $20 billion, said the news agency AFP. The report is on the basis of an internal email seen by American news media. The email, sent to employees, dealt with a new stock compensation program in the San Francisco-based company.

The compensation plan has valued the social media platform at $20 billion. This is slightly more than that of Snap ($18.2 billion), the parent company of Snapchat and Pinterest ($18.7 billion). Unlike Twitter, they both are publicly traded.

In the internal email, the company’s CEO describes the brutal contraction in Twitter’s value. According to Musk, Twitter faced grave financial difficulties and it was even on the verge of bankruptcy at one point in time.

“Twitter was trending to lose $3B/year,” Musk said in a message posted Saturday on the platform. AFP