X Is Worth Less than Half of the $44 Billion Elon Musk Paid for It

By: Ben Campbell | Published: Dec 04, 2023

The popular social media app X, formerly Twitter, is worth less than half what Elon Musk paid for it over a year ago.

The 52-year-old SpaceX and Tesla entrepreneur bought the app last October. However, recent evaluations suggest he’s lost billions in the venture.

Market Crash For Musk

Elon Musk shocked the world last October when he revealed he had agreed to buy the social media app Twitter.

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The logo of the social media site “X” (formerly known as Twitter) is displayed on a smartphone

Source: Nathan Stirk/Getty Images

Now known as X, the social media platform has heavily crashed in its valuation following its year under Musk.

Half The Price

According to the company’s equity compensation plan for its employees, X is now valued at approximately $19 Billion.

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SpaceX, Tesla, and X owner Elon Musk poses for the camera

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Considering Musk bought Twitter for $44 billion, that means the social media platform’s value has decreased by over half in less than a year.

Share Price

The privately held company is reportedly offering its employees RSUs at around $45, according to sources.

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A Twitter logo is displayed on a screen at the New York Stock Exchange

Source: Michael M Santiago/Getty Images

X offered its employees stock in March at a $20 billion valuation.

The Company Faced Many Hurdles

Since Musk took over the reins last October, the company has faced many hurdles.

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Elon Musk's account on Twitter X is displayed on a smartphone

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Internal documents have revealed that Twitter suffered challenges, including an 80% employee turnover rate and billions in debt accumulated from the acquisition.

More Problems

In addition to the debt and employee turnover rate, X, formerly Twitter, have lost almost 60% of their US advertising revenue.

Elon Musk rebrands Twitter as X at the app’s headquarters in San Francisco

Source: Justin Sullivan/Getty Images

This comes as a result of changes in verification and content moderation rules.

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Compensation for X Employees

In response to the company’s falling stock price, X has attempted to compensate its employees.

Twitter employees working inside the company headquarters in San Francisco

Source: MicSource: David Paul Morris/Getty Imageshael M Santiago/Getty Images

This includes distributing new stock grants as restricted stock at $45 per share and cash payments of $54.20 for outstanding shares from the previous management.

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Musk Hopeful for the Future

Despite all of the negative attention surrounding Musk’s acquisition of Twitter, now X, he remains hopeful for the future.

Tesla and SpaceX's CEO Elon Musk laughs during an in-conversation event

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On the anniversary of his buyout, Musk outlined his future vision for X as an all-purpose app that will offer multifaceted services. He has even been backed by X’s new CEO, Linda Yaccarino, who has recently encouraged employees to ignore the critics.

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Not all Musk’s Fault

Musk had initially agreed to buy Twitter for $44 billion last April.

Screens show drops in stock prices on the floor of the New York Stock Exchange

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The buyout initially hit a wall following a stock crash that hit tech companies hard. By July 2022, Twitter’s stock had dropped from the $54.20 a share that Musk had agreed to pay to around $34 a share.

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X Pulled from Europe?

Last month, it was reported that Musk was considering pulling the app from the European market following new EU regulations.

Elon Musk gives a speech to the press near Berlin, Germany

Source: Maja Hitij/Getty Images

According to reports, it was suggested the Tesla and SpaceX boss would block access in the EU region over disinformation compliance issues with the International Digital Services Act.

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Not Going to Happen

However, Musk has since denounced this claim in a tweet by writing he has no intention of pulling out of the EU.

Elon Musk, founder and chief engineer of SpaceX, speaks at the 2020 Satellite Conference

Source: Win McNamee/Getty Images

He said the report is “utterly false” and labeled the site that produced the article as “not a real publication.”

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The Show Goes On

So, as it stands, even with the plummet in stock prices, Musk is still confident he can turn X into both a successful app and a profitable business.

In an aerial view, a large X is seen on the roof of the former Twitter headquarters

Source: Justin Sullivan/Getty Images

Over the next year, we may see Musk implement further features to slowly morph the app into what he had planned when he decided to buy Twitter.

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