Billionaire Elon Musk has offered bonus shares to Twitter employees, valuing the company at $20 billion, The Information reports, citing an anonymous person familiar with the 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 would theoretically give employees the opportunity to reap more profits if the company’s value recovers.
Many startups offer stock options at deep discounts.
The move can be seen as an attempt to stop the talent drain. As he did during his administration, Musk fired thousands of employees in a series of job cuts that then led to mass layoffs as workers fled amid growing uncertainty about the company’s direction, according to Bloomberg, and Al Arabiya reviewed it. .
And Musk has made significant changes to content moderation that have scared away some advertisers and eroded value.
The company has also begun removing old verification tags that previously helped users verify claims made by public figures and news organizations.
The Wall Street Journal previously reported that Twitter is offering new stock grants to employees that will begin rolling out in 6 months.