X employees are now owners of the social media company after the announcement of a new equity program this week.
According to internal X documents, eligible employees will receive $45 shares in the company, which is valued at $19 billion. X has implemented a restricted stock unit equity model, which means that the shares will be taxed as income if there is an initial public offering or a sale of the company.
The $19 billion valuation of X is actually a 55% discount from when Elon Musk acquired the company for $44 billion last year. The price was determined by X’s board of directors, despite the company not having an official board.
This valuation follows Elon Musk’s announcement in March that he believed the site’s value had dropped by $20 billion. He made this assessment after making changes to X, including replacing the old staff, revamping the verification system, and reinstating conservative accounts that were previously banned.
