Twitter employees will get stock grant: Musk will give it at a valuation of $ 20 billion, the company currently has about 2000 employees.
Twitter owner Elon Musk has announced stock grants to his employees at a valuation of $20 billion (about Rs 1.6 lakh crore). Musk acquired the micro-blogging platform in October last year for $44 billion (about $3.6 billion). That is, the valuation at which Musk is giving stock options to his employees is about half the valuation of the acquisition.
Information has published a report regarding this. The report states that this shows how much Twitter’s value has fallen since the deal. Musk said in an email that he is optimistic about the future of the social-media company. “I see a clear, but difficult, path to a valuation of more than $250 billion,” he said. That is, the stock grant given now will become 10 times in the coming time.
630 million dollars were spent in 2021
Twitter had spent about $630 million in 2021 on stock-option based compensation. It had over 7,500 employees and now, after shedding thousands of employees in several rounds of layoffs, the company is down to around 2,000. Despite Musk’s Twitter monetization efforts, the micro-blogging platform has reported a massive 40% drop in revenue and adjusted earnings for December 2022.
What is stock grant?
Stock grants are given to the employees of any company for a specific set period. Employees receiving stock grants cannot sell their shares for a certain period of time. This period is called vesting period. Stock grants are given by companies to retain employees for a specific period of time. If an employee does not stay with the company till the vesting period of the stock grant, then he does not get the benefit.
Subscription service to make Twitter profitable
Elon Musk has decided to go on subscription to make Twitter profitable. They have launched Twitter Blue in most parts of the world. Android and iOS mobile users in India have to pay Rs 900 per month for Blue subscription. Web users get Blue subscription for Rs 650.
Will have to pay Rs 82,000 a month for the Golden Tick
Companies will have to pay about 82 thousand rupees every month for the golden tick. At the same time, Twitter will start ‘finishing’ its legacy verification program from 1 April. Under this, the company will remove the blue tick from the users’ account. Although users take the service of Twitter Blue by paying, then their blue tick will remain, but the tag of legally verified will be removed.
