My reactions and observations are not unique. I suspect most people viewed recent events with the same set of feelings. Still, it seems that some folks, including those much more smart and aware than I are missing the big picture.
Initially, Musk sees a shiny toy and decides it would match his eyes and shoes, as well as his ego. Next, with absolutely no due diligence, even with many news stories correctly reporting that Twitter has NEVER made a profit, he bids 11X the realistic value of the company, and managed to include an expensive penalty if he withdrew. The lawyers for Twitter done did good. Their “in case of default” clauses and language were top notch and almost impossible to avoid. That left a certain muskrat on the hook. So, he switches gears and buys the company.
How long had it been before he recognized he truly screwed the pooch with this dubious deal? It took only weeks, before he made noise about fake accounts, trying to cheat his way out of a very bad, very expensive deal. But the contract writers did do due diligence, while Musk only did doodoo. The money was exchanged, the title transferred, and Elon became the High Lord and Executioner, but without the cute operatic sound track.
My first reaction: Whose money is he using? (Chinese, Saudi, probably some Russian petrodollars in the mix) Certainly he used some of his own, but not all, not for the whole kit, caboodle, trimmings, three scoops, and extra gravy on the side.
HOW MUCH? Forty four billions? It seems smaller in words than in numbers: $44,000,000,000 — there. much larger and even less logical. And just how much of that amount is made up of debt? Debt that Twitter could never ever repay? (For a similar example about debt and theft, check out the Kroger Albersons merger here: www.reuters.com/… ) Time will tell.
So, with the speed of an orbit bound Tesla, he consummated the purchase, again, at an incredulous, jaw-dropping price of 11X the actual value — for a mere communications/ad generator & displayer/social media company. Their actual, measurable product? probably lawsuits.
Being long on ego and short on thick skin, he immediately canned the entire board of managers, the very people who kept the operation going in the face of many headwinds, troubles and growing/groaning issues (Hey, this is my diary, so I can pun-nish you all I want) He named himself leader of all his eyes could see. He had ARRIVED. Every person on this flat earth was talking about him and his deal. And he was happy. For a very, very short span of time.
So, his next steps were painfully obvious. Musk applied the same tools that so many capital and finance managers (translation, thieves and scoundrels) have used before. Use debt to buy up a company, steal the assets, cut costs and press for short-termed, increased profits. Honestly, people will volunteer to pay Musk money each month for something that was fun and free? On what flat earth, Mr. Musk?
Then came the doom & gloom team, talking about how Elon Musk could become an even larger security problem, how his Russian, Chinese and Saudi ties could harm the USA, as well as most of this flat earth. Oh Noes! It is this group that is the most amusing, because they are not only predictable, they are so very wrong. They presume Twitter will remain constant and whirled-wide. They believe that despite a new owner, its users will stay loyal. Yea, right.
Here are a few Agnostical Facts which are the basis of this sermon:
1) every social media company has its own “use by date,” after which it becomes stale and unappealing. Myspace is a prime example. Heck, even Usenet lost its shine over time except for its massive porn collection.
2) Twitter’s rise was noteworthy, with some power opinion makers getting many hundreds of thousands of followers. It made people famous, it made people mad, it became, for a short time, a must have app to reach out to frenemies, best fiends, potential voters and politicians. Twitter actually touched everyone’s lives, that is, if they had an intertube account. No wonder Musk wanted to own and manipulate it.
3) Musk significantly overpaid for a a company doomed to stagnate, even shrink. Unlike a couple of national grocers, there was no significant asset, pension funds, or mineral holdings that could be stolen and ripped off, unlike other mergers and corporate buy-outs.
4) Social media users follow a familiar pattern; A. the kids find a new platform, and make it fun. B. while is it fresh and new, it keeps attracting new people. C. New blood, especially the yute, makes it a great target for advertisers. D. Seeing what their kids are doing causes parents to try things out, and they, too, join the crowd. This pleases advertisers even more. E. It becomes huge and important communications platform just because of its size. widespread appeal and ease of use. F. the resulting popularity attracts hackers, opinion manipulators and foreign agents wishing to do damage to countries and individuals who they target. G. Hacking and misinformation become so pervasive that the organization has to institute some rules, where earlier there had been few or none. H. With so many olde farts now online, and elbowing their way onto the platform, the yute believes this place is stale, boring, and no longer interesting. They begin looking elsewhere and leave by droves. I. Advertisers are now shaken by the huge amount of misinformation, the loss of the yute, potential litigation, and potential bad press, so they follow the yute to the exits.
5) Twitter becomes a joke and an utter waste of $44 BILLION dollars.
It could not happen to a more deserving individual.
On Edit: gizmodo.com/…
Holey holy wholey shit. They identified those who support the muskrat on finances and loans. It is actually worse than i could have imagined.