X, formerly known as Twitter, has been valued at $19 billion, a stark drop in company value compared to the $44 billion price paid by its owner Elon Musk last year.
The company’s value was revealed based on its employee equity compensation plan, according to documents reviewed by Fortune. The value dropped by $1 billion since the last time the company offered employees stocks in March.
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Employees were given access to X’s equity at $45 a share.
The banks who helped Musk with the purchase expect to take a hit of at least 15%, or $2 billion, when they attempt to sell the debt. This would lead to the loss of hundreds of millions for those who hold the largest pieces of the debt, including Morgan Stanley, Bank of America, Barclays, and MUFG. Some involved expect the company to be rated as being at higher risk of defaulting.
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Musk is experimenting with new tools to make the platform profitable. These include additional tiers in the app’s premium program, charging a $1 annual fee to gain access, and more political ads.
X has also cut down on staff by 80% since Musk’s initial purchase. It also lost 60% of its revenue over the summer.
