Shulou(Shulou.com)11/24 Report--

CTOnews.com, March 26 (Xinhua) on October 27, 2022, Musk finally completed a deal to privatize Twitter for $44 billion (CTOnews.com Note: currently about 302.28 billion yuan). In a recent email to employees, Mr. Musk offered stock awards worth about $20 billion (currently about 137.4 billion yuan), less than half the amount he paid when he bought the company, according to The Information.

Foreign media pointed out that this represents Musk's admission that Twitter's market value has fallen after he completed the deal, but it is still much higher than the open market valuation of Twitter competitors.

Musk expects Twitter's revenue this year to be less than $3 billion (currently about 20.61 billion yuan). Given the company's debt of $13 billion (currently about 89.31 billion yuan), the valuation of $20 billion represents 11 times Twitter's revenue this year, with an implied enterprise value of $33 billion (currently about 226.71 billion yuan).

By contrast, Snap, Pinterest and Meta Platforms, Twitter's closest digital advertising competitors on the open market, trade at an average price of 4.5 times projected 2023 revenue and corporate value, according to Koyfin.

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