Twitter CEO Elon Musk said he foresees the $20 billion in stock grants he has offered employees being worth more than 10 times that, Benzinga reports.
“I see a clear, but difficult, path to a >$250B valuation, meaning stock granted now would be worth ten times more,” Musk said in an email to Twitter employees.
Musk said he is reshaping the company so quickly that his acquisition of the social media platform “can be thought of as an inverse startup.”
The stock grants, which vest over four years, are valued at roughly $20 billion, less than half of the $44 billion Musk paid to acquire Twitter, The Wall Street Journal reported Sunday, citing an email Musk sent to staff that the paper reviewed.
The company plans to permit workers to cash out some of their equity in about a year.
Twitter, like many other technology companies, has offered multiple stock grants that vest over several years to its employees, in order to attract and retain talent.
Last month, Musk said in another staff email that Twitter would “make significant stock and other compensation awards, based on performance.”
Musk recently projected Twitter would generate less than $3 billion in revenue in 2023. According to The Information, taking into account Twitter’s $13 billion in debt and $20 valuation, a multiple of 11 times $3 billion in revenue would imply an enterprise value of $33 billion.
For the second quarter ended June 30, 2022, Twitter posted a net loss of $270 million, versus a profit of $66 million in the second quarter of 2021.
Musk said he has made radical changes at Twitter to avoid a bankruptcy.
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