Elon Musk’s Twitter deal is a ‘deal from hell’
Agree
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He will resign as CEO to focus more on Tesla (his real money machine), so Twitter so far has been a major distraction and certainly not the deal that he expected
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There seems to be no real plan yet and more like scatter-shot actions like firing people, now banning liberal reporters, not paying rent. It is somewhat fun to watch from the sidelines, but there seems to be no path to profitability yet
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The fact that he tried very very hard to get out of the deal just shows you that he massively overpaid for Twitter.
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It will be very hard to make the numbers work to justify the $44B price tag. Cost savings in firing people will not do the trick, Musk needs to find a completely new revenue model, the $8 for verified user status is not nearly enough.
Disagree
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Never bet against Elon Musk: The guy literally and single-handedly revolutionized electric cars and sends rockets to space. Let's see what he can do with Twitter!
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The Economist called it a "$44B education" in running a in a way more complicated business than cars and rockets as it deals with people's perception and free speech issues. He made several about faces on restricting users and posts and does not have a revenue plan yet either. As a result he is stepping down as CEO since Tesla's stock (his cash-cow) is tanking
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As of now (May 2023) the valuation of Twitter is only half of he paid for, the blue checkmarks are a fiasco, but nevertheless, Musk will make Twitter work in the end
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He for sure has unorthodox ideas on how to run a company, e.g., firing half the staff, requiring 'hardcore commitment', asking twitter users in a poll whether he should be CEO, but he will eventually turn this company around if he figures out a new revenue model