Post
Topic
Board Economics
Re: Elon Musk and the fall of Twitter
by
coupable
on 29/03/2023, 21:03:51 UTC
Although he is financially one of the richest businessmen in the world, it is also worth noting that the share prices of his other companies could fall through losses on his Twitter purchase. In my opinion his main mistake was disregarding public sentiment. What is your concern?

He is a genius and he will certainly surprise you and everyone.

Maybe not all his companies will skyrocket,  but most of them are

Let's not confuse Elon's eccentric personality with his abilities and virtues, which he clearly has.


All indications indicate that the Twitter deal is a loser and that it was in a kind of show. Elon Musk is a genius in his management of projects with new and ambitious ideas such as Tesla and SpaceX, but his adventure with social media platforms was not very genius since the company had not generated revenues for years before its purchase and that the price offered was imaginary that exceeded its real value. Even if he succeeds in saving Twitter from the difficulties it is going through, this may cost more time, more effort, and huge capabilities, much more than what was initially planned.

I think it is expected because twitter first move is to clear its platform of idle accounts and clear its office of employees.  Regardless, I believe Elon Musk is not showing any distress or problem on the status of Twitter.  It simply shows he know what he is doing.  Besides, it takes time for a company to rebound when it cleans its system.


This is not the case with Twitter, because the platform needs urgent solutions. The price offered by Elon Musk to complete the deal exceeds its size as a loss-making company. Twitter has to pay interest on loans worth $ 1.2 billion annually in addition to the principal. Reducing employment and imposing additional fees on users did not contribute to resolving matters as much as it increased their complexity. The deal this time is greater than Elon Musk's ambitions, especially since market competitors will push towards weakening the platform.