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Shocking Decline: Elon Musk’s X Loses $25 Billion in Value in Just a Year

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Company X’s Value
Plummets by 55% in a Year
Musk’s Management Blamed

Forbes

Elon Musk, the CEO of Tesla, paid $44 billion to acquire the global social media platform Twitter last October. A year later, the value of the now-rebranded X has dramatically plummeted, causing shockwaves.

According to internal documents of X obtained by The New York Times (NYT) on the 30th (local time), X has set the value of new stocks paid to employees as incentives at $45 per share.

This implies that the current company value of X is $19 billion, which has decreased by about 55% from the $44 billion Musk paid to acquire X a year ago. At the time of the acquisition, Musk paid $54.20 per share.

Forbes

The industry points to Musk’s management as the cause of the value decline.

After acquiring Twitter, Musk embarked on a comprehensive overhaul, changing the company’s name to X, among other changes. He altered some content rules, and in the past year, over 80% of the existing 7,500 employees have either resigned or been fired.

Such inconsistent decision-making and a sharp decline in content credibility have resulted in X’s primary revenue source, advertising sales, being halved.

According to Bloomberg, Musk burdened X with $13 billion in debt for the acquisition, forcing the company to pay about $1.2 billion in interest annually.

Forbes

Despite this, Musk remains optimistic about X’s prospects. He plans to transform X into a ‘jack-of-all-trades’ app encompassing dating, hiring, shopping, and payments. X launched voice and video call services this month and even developed a beta version of the job service.

Musk has suggested to employees that “X will compete with Google, YouTube, Microsoft (MS), LinkedIn, PR Newswire, and others.”

By. Joo Seung Hee

tenbizt
content@viewusglobal.com

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