NEW YORK, Oct 3 (Reuters Breakingviews) - X is still worth something, but not for the people running it.
loadingDespite Musk’s big pronouncements about pushing into subscriptions, X has historically relied on advertising, which contributed over 90% of revenue when it was a public company.
Put it all together, and X isn’t just worth less than Musk paid for it, but likely less than its debt.
Put that on the same enterprise-value-to-sales multiple as Snap, which is down to a mere 3 times, and X is worth around $8 billion.
Like a financial black hole, X threatens to consume most of whatever value it once had.
Persons:
Boss Linda Yaccarino, Morgan Stanley, Musk’s, Musk, ByteDance, X, Linda Yaccarino, Elon Musk, Jonathan Guilford, Sharon Lam
Organizations:
Reuters, Financial Times, Elon Musk’s, Comcast, Linda, Thomson