X (Twitter) valued at $19 billion: Elon Musk’s vision and employee equity take center stage

Elon Musk's TwitterElon Musk's Twitter

In this post:

  • Elon Musk’s social media platform X, formerly known as Twitter, is now valued at approximately $19 billion, according to internal documents offering restricted stock units to employees at a share price of $45.
  • The valuation reflects a 55% decrease from Musk’s original purchase price of $44 billion in October 2022 and comes after a year of substantial changes, including a rebrand and modifications to the platform’s creator monetization system.

Significantly, X—previously known as Twitter before Elon Musk’s acquisition in October 2022—now holds a value of around $19 billion, according to a report by Fortune. This figure comes to light following an internal email sent to staff, offering them restricted stock units (RSUs) at a share price of $45. Earlier in March, X set its employee stock valuation at $20 billion. Besides the previous valuation, the current year has been a roller coaster for the social media platform under its new ownership.

Moreover, since taking the reins, Musk has instigated several notable changes to the platform, including a complete rebranding of Twitter to X. Most recently, the entrepreneur shifted X’s creator monetization system. The change targets rewarding accurate tweeters over sensational ones, a move aligned with Musk’s vision to “maximize the incentive for accuracy over sensationalism.”

Employee equity and controversy

Additionally, Fortune cited a screenshot detailing the company’s new employee stock grant offers, thereby confirming the $19 billion valuation. Internal documents from X have also revealed that the type of equity provided to employees, RSUs, will mature over four years. Consequently, the RSUs require a “liquidity event,” such as an IPO or company sale, for them to be taxed as income.

However, the platform’s $19 billion valuation marks a 55% decline from Musk’s original acquisition cost of $44 billion. Employee equity in X is structured to allow for cashing out a portion of shares to outside investors, emulating SpaceX’s compensation plan. While Musk’s valuation of the company may be deemed generous, especially when Fidelity, one of the big investors, thinks X is worth 65 percent less than its acquisition price, the share valuation nonetheless indicates a confidence in the new direction X is taking under Musk’s leadership.

Despite Musk’s proactive approach in steering the platform towards what he perceives as a more genuine space, the future stability and growth of X remain uncertain. The valuation confirms what many were already speculating, although whether this newfound optimism will translate into long-term stability and growth is yet to be determined.

The move to offer RSUs to employees at the $19 billion valuation also puts an end to the long-standing question among the staff about the worth of the company they work for. Hence, with the public now privy to these internal valuations, X finds itself at a significant crossroads, one where employee morale and public perception could either propel the platform forward or hold it back.

In all, X’s recent valuation serves as a critical marker for the platform, shedding light on Musk’s vision, employee equity, and public perception. However, the valuation also raises new questions about the company’s long-term prospects and stability. Thus, as X continues to navigate through changes and challenges, it remains to be seen whether the platform will ultimately validate Musk’s vision and strategy.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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