Twitter's new "valuation"

I had a great weekend recovering after last week. By the time Friday came around, I could tell that I was running on fumes. It took me until Sunday to start feeling better though as I had that much sleep debt built up. It was a much needed weekend of rest and leisure.

It was a rather slow news weekend which was great. Perhaps the only notable thing to mention is Elon mentioning that Twitter is now worth $20b and employees would be issued stock compensation at below that price.

I don’t really know where Elon got the $20b number from. It could be the 409a valuation of the company, but it could just be what Elon decide was a good number to announce to the public. He tends to say what he wants, when he wants it. And let’s not forget that he paid $54.20 per share for Twitter which is of course a joke on 420.

The original employees who cashed out at $54.20 must be laughing right now. Many of these folks were fired or laid off and they were able to cash out at a much higher valuation. Not an awful parting gift from Elon.

Those employees still at the company likely falls into one of these two viewpoints. Some may think that the $20b is way too high still and they’re getting absolutely screwed with their equity grants. The other group may think that Twitter is still severely undervalued and believe in Elon’s vision.

I don’t know where the majority of employees sit on that spectrum. I’d imagine if they’re still at the company that they believe in Elon still and possibly believe his statement that the company may be worth $250b one day. I’m not sure where I sit on this, but if I had to put a bet on things, it’s hard not to take the under on that.