Categories: Market

Elon Musk gambled $24 billion

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Elon Musk was on Paypal, then he founded Tesla and SpaceX. He now owns Twitter.

He is considered the entrepreneurial genius of our time. But with the Twitter takeover, Elon Musk (51) seems to have gotten a bad deal. In an email to employees on Friday, Tesla’s founder wrote that Twitter is currently worth about $20 billion. That’s $24 billion less than October 2022, when Musk paid $44 billion for the social network.

In the email received by The New York Times, Musk warns employees that Twitter remains in a “precarious financial situation.” At a certain time they came to the brink of bankruptcy.

Here’s how Musk explains the layoffs

Musk goes on to say that mass layoffs and “radical” changes at the company are necessary to avoid bankruptcy. “Twitter is rapidly transforming,” Musk said. The short message service can be thought of as a “reverse start”.

In his first few months at Twitter, Musk fired senior management and about half of its 7,500 employees. Since then, Twitter has repeatedly suffered from technical glitches. Too many companies no longer advertise, which costs Twitter sales.

Source :Blick

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