X with a sharp loss in value one year after the Twitter acquisition

Elon Musk bought the company just over a year ago for $44 billion. The current value is only $19 billion.

According to media reports, Elon Musk’s electronic platform, when the shares were allocated to employees, was worth a total of $19 billion, Fortune magazine and the financial service Bloomberg, among others, wrote on Monday. Musk paid about $44 billion to buy Twitter in October 2022.

He has since renamed the service to X and wants to use this as a basis to create an app with more functionality including financial services. The platform has suffered a significant decline in advertising revenue since the acquisition. Musk has said several times that they are about half as high as they were before on Twitter. In addition, it took out loans worth about $13 billion for the acquisition – which are now leveraged

“Everything app” similar to “WeChat”

Many companies avoid X as an advertising platform because they fear a negative environment for their brands. Musk’s plan for X is to move from ads to paid subscriptions. But so far, the company has convinced less than 1% of users to sign up for its premium monthly service, which translates to only about $120 million in revenue annually, according to Bloomberg.

The billionaire has also spoken loudly about turning X into a WeChat-style “everything app”, which could generate revenue from features such as shopping and payments. The company launched voice and video calls earlier this month, has a beta version of its recruitment service and announced plans to launch a news channel. Musk told employees and Cision’s PR Newswire. In the past, Musk has indicated a desire to take X public, but a sharp decline in the company’s value could make that difficult. (APA/Bloomberg)