Elon Musk has given Twitter employees new stock grants valued at $20 billion, reports The Information mentionedquoting an anonymous person familiar with an email the CEO sent to employees.
The $20 billion valuation is less than half of the $44 billion Musk paid to buy the social media platform last year, which in theory would provide workers with a huge upside if the company’s value recovers. Many early startups offer stock options at deep discounts.
The move can be seen as an attempt to stem the talent drain. During his drive, Musk laid off – laid off temporarily Thousands of employees in a series of job cuts that then led to massive resignations, as workers fled growing uncertainty about the company’s direction.
Musk has made significant content moderation changes that have scared off some advertisers and eroded value.
The company also started Removal Verified ancient tags that previously helped users validate statements made by public figures and news organizations.
The Wall Street Journal earlier mentioned that Twitter was offering new stock grants to employees that would begin to vest after six months.