- Elon Musk said that Twitter staff will be granted stock awards based on a valuation of around $20 billion, way lower than the $44 billion he bought it for last year, according to an email seen by The Wall Street Journal. In the note to the team, Mr. Musk expressed his confidence in the company's future. "I can see a potential to reach a valuation of >$250B," he said, meaning granted shares now would be worth 10 times more.
- The recent valuation of Twitter is a testament to the difficulties that have emerged since Elon Musk took the reins. While Twitter has been attempting to lure back its big spending advertisers, many have already backed away, presenting a major obstacle to the platform's primary income source.
Why it matters
Since Musk took over Twitter last year, employee compensation has been a major concern. Former employees reported that Twitter usually compensated them with stock grants that vest over time. On Friday, Twitter informed employees via email that new equity grants will vest after six months, and a liquidity event will allow employees to cash out some equity in about a year.