The rise of X: A comprehensive analysis of its $19 billion valuation

The valuation of Elon Musk's X has experienced a significant drop from $43 billion to $19 billion.

The valuation of Elon Musk's X has experienced a significant drop from $43 billion to $19 billion.

Elon Musk's X (formerly Twitter) is now valued at $19 billion, a significant drop from the $43 billion he paid for the social media company last year, as reported by The Verge. 

X Valuation Reduced by 55%

This 55% decrease in valuation occurred after Musk took the company private and became the majority owner, with the share price at the time of purchase set at $54.20. 

The new valuation of $19 billion is based on documents that detail the allocation of shares to current employees. 

According to this valuation, the stock equity value awarded to employees is $45 per share. This is in line with Musk's promise to model X's compensation plans after those of SpaceX, allowing employees to own shares that they can liquidate periodically. 

However, it's important to note that the employee stock offerings are subject to restrictions, with the shares being earned over a period of four years from their issuance. This vesting model aims to protect the shares from dramatic devaluation in a short period. 

The significant devaluation of X reflects the current market turmoil and the substantial loss faced by Elon Musk and other top investors in the company, including Binance's Changpeng "CZ" Zhao. 

Elon Musk's Endeavors in Shaping the Future

Since taking over the company, Musk has implemented various changes to X, including restructuring its corporate organization and monetization strategies. He appointed Linda Yaccarino as the CEO and made X Premium subscriptions mandatory for obtaining verification badges. 

Despite initial criticism, this move has enhanced X's popularity, particularly due to the additional features associated with verified users. Recently, Musk and Yaccarino unveiled plans to transform X into a financial hub, aiming to eliminate the need for users to have a bank account within a year. 

This foray into fintech has been teased since Musk acquired the company, and crypto insiders predict that non-custodial crypto wallets may also be integrated into X's future plans. These initiatives are expected to increase X's value and contribute to its long-term valuation growth.