What I’m saying is that their pre-IPO valuation dropped by 2/3 before the additional user drop post-Spez closing everything down because he literally said he’s trying to do what Elon is doing to Twitter.

To be even more clear, what Elon is doing to Twitter has cratered them from the $44B that he paid for it (which was at the time probably overvaluing them by about 10-15%) to what was in April (as I recall) a $15B company as per the write down from their major bank investor. It is now widely considered a $4B company post the X transition and I think they’re still somehow bleeding valuation. Even that might be generous, since it has come out that Dorsey only kept his $1B stake in the company under the agreement that they’d buy his shares from him at the original $54.20 offer, so you can count that as yet more debt - this time for a quarter of the worth of the company. The Saudis also agreed not to sell and hold another $1.5B iirc, so if they have a similar deal Twitter is a $4B company with an additional outstanding and not on the books debt of $2.5-3B.

Spez did what he did because they crashed from a massively overvalued IPO estimate - what the bank that will be writing their IPO expects the company is worth - to about a third of what they thought. That’s why Reddit freaked out - Spez was watching his (hypothetical) money being set on fire. He really thought he was going to be the next Silicon Valley multimillionaire based on that site. His attempt at Eloning has not, based on anything I’ve read, increased the value of the site.

I think most of the cratering is because, as we all know, the money went away. That’s the same cause of the 500k layoffs in the tech field or whatever we’re up to. Literally everyone but Apple has cut tens of thousands of people because the covid boom and the free money went away. He’s still chasing the dragon and lashing out in a panic.

Spez thought he was going to be the next Elon. He’s going to be the next Tom MySpace if he’s lucky at all, and even that is more than he deserves.

On social media sites, the users are the ones who create the value. The company provides the structure to expose that through developing the software and the algorithms, and obviously paying to host everything. But unlike, say, a newspaper, everything that makes the site worth visiting at all is the community.

The moderation is the product. That’s it, 100%. When they get confused about that - that is, when they lose sight of the fact that 100% of their real value is being created for free, and their job is to just get it to people - their community starts to fall apart. A fall in KPIs, pre-IPO, is deadly. I would be shocked if they go through with it at this point, because they’re going to get killed. spez needs to show ballooning numbers to justify anyone institutional investors staying involved.

They should sell themselves to anyone willing to write a check at this point.