- cross-posted to:
- technology@lemmy.world
- cross-posted to:
- technology@lemmy.world
You must log in or # to comment.
imagine destroying one of the world’s most recognisable brands in less than a year
Seriously. Brand recognition like Twitter is the dream. It’s so strong, X will forever be known not as itself, but as “X, formerly Twitter”.
Some people even skip the “X” part in “formerly twitter”
@Flax_vert or “ex-Twitter”
Or they just skip the “X” and “formerly” part entirely and just call it Twitter 🤣
$19 billion seems high.
So does the elongated muskrat
This is what the company valued itself as being worth. Not what it’s actually worth. So I’m not sure if Elon is trying to over or under value here, but I’m guessing over.
Surprised it’s not zero already honestly.
Cool. So no one is asking why Elon is going out of his way publicizing the fact his new company shed over half its value?? This is a guy whose ego is fragile he can’t even be told no without throwing a world class temper tantrum.
And he’s going around making up these stories? 🤔
I think he’s doing it, because he has no other option. This valuation is based on the equity he offered to the employees. And I don’t think he would risk lying about it, since his relations with the SEC are already sour.
What sort of actual effect does valuation have?
I assume that the valuation is what Elon can expect to recoup if he were to liquidate (sell off) Twitter for some reason. Even if he didn’t, the amount is going to make it to the balance sheet of his lenders - representing a loss in the deal.
If the equity is worth $19 billion, and the debt is worth $13 billion, that’s a drop of $44 billion to $32 billion. Still hilarious, although not as dramatic.
The equity is merely an estimate; it’s no longer a traded company so a public valuation is not applicable. The value is still a valid valuation, just as DJT’s valuation of his properties were “valid,” but it’s not as if you can sell portions of the company tomorrow to generate cash that will settle in three days, like you could with Tesla. And the debt is secured by the $19B valuation, so it’s not in addition to the equity; the company is “worth” $19B but caries a debt burden of $13B making it’s liquidation value $6B (not really book value since that includes “good will” and “future performance”, not just the value of it’s real, personal, and intangible/code/patent properties).
