X (Twitter) Loses Over Half Its Value Since Musk Bought It

The social media platform X (formerly Twitter) now costs less than half of what Elon Musk paid for it a year ago.

This information is reported by Bloomberg.

According to a person familiar with the matter, shares with restricted access, which were granted to employees, value the company at $19 billion. However, a year ago, Musk acquired Twitter Inc. for $44 billion.

Following the acquisition, he laid off a significant number of Twitter employees and rebranded the company as X. He also altered some content rules, resulting in the loss of over half of the advertising revenue.

The company faced financial difficulties during Musk's ownership. At the time of the Twitter acquisition, it was valued at $44 billion, based on a combination of debt obligations and equity.

Musk's purchase burdened the company with $13 billion in debt, and over time, his unstable decision-making and relaxed content safety rules deterred advertisers, leading to a 60% drop in sales.

According to Bloomberg's estimates, X also owes approximately $1.2 billion annually in interest payments on its debt.

As previously reported by The Gaze, billionaire Elon Musk plans to transform the social network X (formerly Twitter) into a digital bank. He has stated that the platform will offer high-yield money market accounts, debit cards, checks, and loan services, enabling users to "send money anywhere in the world instantly and in real-time."

It is worth noting that Musk intends to transition X to a fully subscription-based model. He believes that monthly fees for using X are the only effective way to address the issue of bots. However, he has not specified the exact amount or timeline for implementing this change.

Musk has mentioned that X has 550 million active users each month, generating 100-200 million posts on the social network daily. Nevertheless, as of mid-July, advertising revenue on the platform has significantly declined.

The subscription program, formerly known as Twitter Blue and now renamed X Blue by Musk, offers features starting at $8 per month. These features include the ability to edit a post within an hour, a 50% reduction in ad impressions, the ability to post up to 25,000 characters, and the ability to upload videos up to 3 hours long or up to 8 gigabytes in size. X Blue subscribers will also be entitled to a share of ad revenue displayed in response to their posts.