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Value of X has fallen 71% since purchase by Musk and name change from Twitter
(www.theguardian.com)
this post was submitted on 02 Jan 2024
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It was never worth that. It was at most half that. But Elon Musk claimed he would buy it, but Twitter responded that it was NOT for sale. Then Musk offered double the value, and Twitter said....
OK! Thank you very much. 😀 🤪 😋 😜
Then Musk tried to get out of the deal, but he couldn't because there are laws about that stuff, something Musk is used to not having to care about, because his lawyers handle such issues for him.
He ended up having to pay, but he got some stupid people to help him finance it, making him potentially only lose half! He loaned half the money at a high interest rate in Twitter, so Twitter would have to pay it, leaving Twitter with a loan on top of already existing debt, that was to the amount of the total actual worth of Twitter sans the Musk offer. Why anyone would agree to loan Twitter money under such conditions is very strange, but the interest rate was high. Still there is no way a company already running at a deficit can service such a loan. But Musk is a shrewd conman, and he probably promised all sorts of mindbogglingly profitable businesses he would turn Twitter into.
Of course as the idiot he is, Musk then sued the Twitter lawyers for forcing him to buy at the price he had himself offered unconditionally, because why the hell not, lawyers are people too, and they need to earn a living.
So just to make sure everything was fine, he fired 80% of the people that worked at Twitter, closed one of the datacenters, and Tweeted some racist antisemitic shit, so he lost 70% of his advertisers.
And lately he has been severely butthurt that things aren't going well, saying to advertisers they can go fuck themselves, and claiming the earth will know the truth, which he intends to document in great detail.
So now the company has no internal value, and a bankruptcy will result in Zero money back to Musk. 22 Billion out the window for Musk, and another 22 Billion for those who helped him.
Prior to musk buying it, although twitter usually made a loss it had had a couple of years when it made a profit. He didn't buy a business that was already destined to fail, he bought one with potential and made it fail.
Absolutely,In 2021 Twitter had a write off about $600mil, and without that they would have made a decent profit of about $200 Million.
Twitter was absolutely on track to become profitable, with a total revenue of $5 bil up 35% YOY.
https://www.tipranks.com/stocks/twtr/financials/income-statement
If "the thing formerly known as Twitter" fails, it's 100% Elon Musk.