X, the social media platform that used to be Twitter, has seen its value plummet since Elon Musk bought it for $44 billion a year ago.
The company is now worth only $19 billion, or $45 per share, based on the restricted stock units given to employees. This is according to a source who spoke to Fortune.
Musk’s takeover of Twitter was controversial and costly. He fired or drove away most of the staff, changed the name to X, and altered the content policies. This alienated many advertisers, who cut their spending by more than half.
X also has a huge debt burden of $13 billion, which costs it $1.2 billion in interest every year. This is based on Bloomberg’s estimates.
Musk’s vision for X is to make it an “everything app” that offers various features and services, such as subscriptions, shopping, payments, hiring, news, and video calls. He wants X to compete with giants like YouTube, LinkedIn, and PR Newswire.
However, his plan has not been very successful so far. Only less than 1% of users have signed up for X’s premium service, which generates less than $120 million a year.
X’s CEO Linda Yaccarino recently met with bankers to discuss the company’s financial situation. She revealed some new ideas for X, such as different advertising options. Musk has also expressed his interest in taking X public again, but that might be hard to do given its low value.
Some of X’s new features are:
- Audio and video calls: X has rolled out audio and video calling features earlier this month. Users can now make voice or video calls with their followers or contacts on X.
- Hiring service: X has launched a beta version of a hiring service that allows users to post or apply for jobs on the platform. Users can also showcase their skills and achievements on their profiles.
- News wire: X has announced plans to launch a news wire service that will provide breaking news and updates from verified sources. Users can subscribe to different topics and get notifications when new stories are published.
- Subscription tiers: X has introduced two new subscription tiers, Basic and Premium+, in addition to the existing Premium tier. The Basic tier costs $3 per month and offers features like longer posts, edit button, themes, and custom app icons. The Premium+ tier costs $16 per month and offers an ad-free experience, revenue-sharing, and other creator tools
About Author
