Twitter worth less than half of what Musk paid for it

It is surprising it is even worth that. I mean how are they going to make big money at all. It seems the advertisers in aggregate do not like the new changes, hence a drop in ad revenue. And since they have dramatically low employees now, unless Musk has some miraculous money making idea up his sleeve, they will not be able to take on many features or products which might be new paths to extra revenue. I think in the end twitter might just fold at some point or become a small private company making very less money.

While it is remarkable that Elon Musk would implicitly acknowledge that he paid over twice what Twitter was worth, that's only half the story.

There are at least two reasons to cut that value in half again: one reason is that he lost half of the advertisers. Another reason is that the LBO debt has been written down by the creditors to roughly half what they are owed.

He's putting one over on his remaining employees. Yet another way to tell the $20B is a fantasy number is that no CEO candidate would take options based on Musk's idea of a valuation.