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The Marked Depreciation of X Value since its Acquisition by Elon Musk

The Marked Depreciation of X Value since its Acquisition by Elon Musk

The company X, formerly known as Twitter, has reportedly experienced a drastic depreciation, with its value dropping from 44 billion dollars at the time of its acquisition by Elon Musk to approximately 19 billion dollars, according to internal documents cited by The Verge.

Despite Musk’s initial payment of 54.20 dollars per share, the current value per share has been reassessed at 45 dollars according to the latest employee allocations, indicating a significant loss of value since the delisting of TWTR shares in November 2022.

Musk plans to revolutionize X by transforming it into a versatile application, potentially expanding its services beyond social media to include payments, stock investments, and other services such as recruitment and dating, highlighting an ambitious vision despite the current financial challenges.

Overview of Capitalization Losses

According to The Verge, which relies on internal documents, X shares have recently been allocated to employees at $45 per share, reflecting a market capitalization of 19 billion dollars. This evaluation marks a reduction of more than half of the value compared to its acquisition price by Elon Musk a year ago.

The Latest Evaluations of X

The Twitter stock (TWTR) was delisted on November 8, 2022, with a value slightly above $53.70 per share, just weeks after Elon Musk paid $54.20 per share upon finalizing the acquisition. The total cost for the acquisition of the company was $44 billion.

The current documents suggest that the fair market value per share is determined by the board of directors, taking into account multiple factors and following tax rules. It should be noted that Musk has not yet formally established a board of directors for X after dissolving Twitter’s existing board of directors as one of his first actions.

Future Perspectives for X

Despite the seemingly reduced valuation, Elon Musk harbors grand ambitions for the platform. During an internal communication on October 26, 2023, he outlined his goal of transforming the social media platform into an all-in-one application, managing everything from payments to investments, as well as non-financial tasks such as recruitment and dating.

It is unclear whether these plans will include cryptocurrency transactions, although the platform already supports Bitcoin (BTC) tips and NFT profile pictures.

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