Elon Musk has reportedly offered equity grants to Twitter employees, valuing the company at $20B.
The valuation is less than half of the $44B that Musk paid to acquire the platform in October.
Musk announced the new stock compensation program in a recent email to employees.
- He told them that Twitter was at one point only about four months away from running out of money.
- "Radical changes," including companywide layoffs, were necessary to streamline operations and avert bankruptcy, he wrote.
- According to the email, Twitter employees will receive stock in the holding company, X Corporation, that Musk used to acquire Twitter.
- The new grants will reportedly vest over four years, and employees will be allowed to sell the stock every six months.
- Musk also wrote that he sees a "clear, but difficult, path" to a valuation greater than $250B someday, which would make Twitter’s stock grants worth 10 times as much.
