While that figure reflects the depreciation of Twitter’s value, it’s still higher than the public market valuations of Twitter’s competitors. Musk has previously said he expects Twitter to “break even” by 2023, but the report shows that Musk forecasts revenue of less than $3 billion this year, plus the company’s $13 billion in debt, which is more than half of this year’s sales. 11 times, bringing its enterprise value to $33 billion.
After Musk took over, he said his company was losing $4 million a day, which led to him laying off nearly 70% of his workforce. The decision was made because Twitter’s main source of revenue remains to advertise, but top brands have started to exit the platform. As a result, ad spending on Twitter fell 71% in December and revenue fell 40% year-over-year.
However, Musk managed to lure some advertisers back by offering steep discounts and implementing a subscription-based verification system to boost sales.
Headlines:
“Elon Musk puts $20 billion value on Twitter”
Or 2.5 Blue checks. Brilliant move in buying the company. Wonder if trolling liberals is worth twenty something billion..— David W Pippy (@DWPippy) March 26, 2023
