Jakarta, CNBC Indonesia – Elon Musk acquired Twitter for US$44 billion final yr. In a manner, the acquisition is a ‘false funding’.
In response to a Constancy report, Twitter is at present price solely 33% of what the billionaire was initially paid for.
Twitter’s valuation is now round US$ 15 billion. The determine comes from funding corporations’ valuation of their shares in Twitter, which was helped by Constancy.
To cite Mashable, Constancy’s Twitter valuation follows a sample since Musk took over in October 2022. Constancy has persistently decreased its stake within the firm. They lowered the worth of their shares by 56% only a month after the acquisition closed.
In late February, Constancy once more downgraded its inventory by greater than 63%.
Regardless of Musk’s latest claims that Twitter will quickly break even and even develop into worthwhile, the prospects for the corporate aren’t superb.
Twitter misplaced about half of its greatest advertiser when Musk took over.
Many advertisers nonetheless have not returned earlier this yr. For individuals who are nonetheless surviving as Twitter advertisers, the allotted price range is way much less.
Musk turned to a subscription-based income mannequin like Twitter Blue to make up for the loss. Sadly, that mannequin has but to point out outcomes.
Twitter Blue is an $8 per 30 days subscription service that gives premium options, similar to longer tweets and movies, in addition to a blue tick for verification.
In response to latest information from researcher Travis Brown, lower than 1% of Twitter’s total month-to-month lively consumer base has subscribed to Twitter Blue.
One other Twitter subscription product, known as Subscriptions, permits customers to pay a month-to-month charge on to sure Twitter customers to entry unique paid tweets and different content material.
Musk himself divulged that he had round 25,000 subscribers final month or simply 0.018% of the roughly 136.4 million followers he had on the time.
Musk has since introduced that Linda Yaccarino, a former NBCUniversal promoting govt, will be part of forces to exchange Musk as CEO.
Ostensibly this motion was taken to assist flip issues round concerning Twitter’s issues with advertisers. Nevertheless, Musk has made it clear that he’ll stay on Twitter’s administration.
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