Elon Musk finally admitted that Twitter's worth is less than half of what he paid when he acquired the social media company.
(Photo : Photo Illustration by Scott Olson/Getty Images) In this photo illustration, news about Elon Musk's bid to takeover Twitter is tweeted on April 25, 2022 in Chicago, Illinois. It was announced today that Twitter has accepted a $44 billion bid from Musk to acquire the company.
When the tech CEO officially purchased Twitter, many people criticized him, claiming that he would be the downfall of Twitter.
Some enthusiasts even believe that the social media platform would go bankrupt because of how Musk handles the company.
Now, more experts will further criticize Elon since the billionaire admitted that Twitter's valuation is now $20 billion.
Elon Musk: Twitter's Worth is Now Less Than Half!
According to Business Insider's latest report, an anonymous individual said that Elon Musk confirmed Twitter's decreasing valuation via an email message he sent to his staff.
(Photo : Photo by CONSTANZA HEVIA/AFP via Getty Images) The Twitter logo is seen on a sign on the exterior of Twitter headquarters in San Francisco, California, on October 28, 2022. - After months of controversy, Elon Musk is now at the head of one of the most influential social networks on the planet, whose "tremendous potential" he has promised to unleash.
Also Read: Elon Musk Says Twitter 'press@twitter.com' to Reply to Queries with Poop Emoji
Although this is the case, many enthusiasts said that Twitter's worth is still above public market valuation levels. This means that it's still worth more compared to its competitor. But, the decrease is still quite alarming given that Elon Musk originally purchased the social media platform for over $40 billion.
As of writing, it is hard to conclude if Twitter's valuation will further decrease in the future.
However, NASDAQ reported Twitter's worth could drastically decrease by up to $10 billion.
Why is Twitter's valuation decreasing?
Elon Musk didn't specify the reason why Twitter's valuation is decreasing. But, based on the reports about the social media giant, one of the main reasons why Twitter is financially struggling is because of the lack of top advertisers.
Recently, many advertising companies pulled out from Twitter because of the controversies faced by the tech CEO. This is a big deal for Twitter because it heavily relies on advertisements to generate revenue.
If you want to learn more details about the issues faced by Twitter, just click this link.
Here are other stories we recently wrote about Twitter and Elon Musk:
Recently, experts said that Twitter verified accounts spread misinformation and pro-Russia tweets on the Ohio train disaster. We also reported about the lowered waiting periods for Twitter Blue's new accounts.
For more news updates about Twitter, always keep your tabs open here at TechTimes.
Related Article: Elon Musk Apologizes for Mocking Disabled Twitter Worker, Claims 'Misunderstanding'
