|
Elon Musk offered Twitter employees stock grants at a valuation of roughly $20 billion, said a person familiar with an email Musk sent to staff, less than half what he paid to buy the company. It was a concrete acknowledgment of how much Twitter’s value has dropped since the deal—but it is still well above public market valuation levels for Twitter’s rivals.
As Musk has projected that Twitter will generate less than $3 billion in revenue this year, and taking into account the company’s $13 billion in debt, the $20 billion valuation implies a multiple of 11 times this year’s revenue to an implied enterprise value of $33 billion. In comparison, Twitter’s closest digital ad rivals in the public market, Snap, Pinterest and Meta Platforms, are trading at an average of 4.5 times estimated 2023 revenue to their enterprise value, according to Koyfin data.
|
