Elon Musk

aguero93:20 said:
Potential future earnings, same as most young companies/IPOs etc. Facebook had never even broken even when they went public.
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It seems a high price to pay for potential future earnings, but who am I to question the richest man in the world.
 
I believe there are circa 400k people paying $5 a month for Twitter Blue which was introduced pre-Musk take over and provided premium features. I sense as well as pissing off existing blue ticket people, he's also alienated the existing Twitter Blue revenue stream.

Say he gets 1 million people to subscribe (highly unlikley), that's <$100m revenue pa. If he goes IPO in 3-5 years, I can't see a business model that make Twitter attractive to any investor.

Time for some smart people to build open-source next gen (Twitter like) social network.
 
domalino said:
...You do realise they've only posted a profit in 2 of the past 10 years?

Also twitter only started making money off advertising when they started banning all the hate speech?

www.politico.com

Top firm advises pausing Twitter ads after Musk takeover

This marks the largest group of advertisers calling for a halt in business with Twitter since Musk took over last Thursday.
www.politico.com www.politico.com
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I remember seeing reports years ago about that but banks a a happy a money keeps coming in and now I’d expect Elon musk will make plenty of money from Twitter..
 
waspish said:
I remember seeing reports years ago about that but banks a a happy a money keeps coming in and now I’d expect Elon musk will make plenty of money from Twitter..
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The banks have warned shareholders they expect to make a substantial loss on these loans.
 
Two Gun Bob said:
So without toddling off for an in depth read, why the $44 billion price tag?
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The 420 in $54.20 per share offer was his lame weed joke and he over valued by around $8 per share when the markets were high when he made the offer at the start of the year. By the time he had to close at $54.20 it over valued each share by around $25-27 per share.

He may be the richest man alive (mainly due to a weird Tesla share price against its own turnover and profit) but that doesn’t mean he hasn’t dropped a major bollock on this one. He spent most of the year trying to get out of the deal and only relented 3 days before his deposition for the court case the Twitter board brought against him for breach of contract.
 
grunge said:
Took Amazon well over 10 years to make a profit. every penny was going into building the business.
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Yeah, people don't realise this. You want to start a business, you either get investment (either privately or through the banks) or you put your own money in. Very, very few businesses are profitable from the get go and those are 99.9% very small scale. Speculate to accumulate.
Still I think this **** will struggle to make Twitter work at that price.
 
grunge said:
Took Amazon well over 10 years to make a profit. every penny was going into building the business.
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The thing people misunderstand about Amazon not making a profit is that it wasn't a case of "Oh we'll make a profit eventually when this takes off", it was a case of a very profitable underlying business deciding to spend every penny they made and more on growing the business and undercutting opposition.

That's why no one was ever really worried about Amazon because all they had to do to become profitable was stop expanding so rapidly.

Amazon Web Services is when they started printing money, and that's because they poured money into it when it was a fledgling market to kill off anyone else to the point where there's only 3 big players in the game and Amazon has as much of the market as Google and Microsoft combined.

Twitter is not really anything like Amazon.
 
domalino said:
The thing people misunderstand about Amazon not making a profit is that it wasn't a case of "Oh we'll make a profit eventually when this takes off", it was a case of a very profitable underlying business deciding to spend every penny they made and more on growing the business and undercutting opposition.


Amazon Web Services is when they started printing money, and that's because they poured money into it when it was a fledgling business to the point where there's only 3 players and Amazon has as much of the market as Google and Microsoft combined.

That's why no one was ever really worried about Amazon because all they had to do to become profitable was stop expanding.
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Yep, Most people don't realise that Amazon is more than just the shop. there servers run tens of thousands of businesses.

Twitter is an odd one. I can only assume the value is based on audience. 230m daily active users is a lot of eyes to sell to and a lot of data gathered to sell on. Musk needs to grow that Audience in a big way to get the monetising working to make up the value he paid.
 
mexico1970 said:
What's a blue tick? Is it an important thing to have?
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A blue tick is a verified user and is an important part of twitter to know your viewing the real deal and not someone pretending.

Its notoriously hard to get one.

Best example I could think of is City. You could have thousands of people with lots of varying twitter handles all claiming to be the official Man city twitter feed. without the tick it would be impossible ( without comms from the club ) to know the real one.
 
grunge said:
Yep, Most people don't realise that Amazon is more than just the shop. there servers run tens of thousands of businesses.

Twitter is an odd one. I can only assume the value is based on audience. 230m daily active users is a lot of eyes to sell to and a lot of data gathered to sell on. Musk needs to grow that Audience in a big way to get the monetising working to make up the value he paid.
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The underlying assets of Twitter will never generate enough income to service turn over long-term profits and service the debt.

The value of twitter to musk is the platform that he hopes to leverage and expand and diversify into other sectors, via a superapp.

The "X" bollocks he has been spouting off about. Hopefully he gets shutdown by competition regulators, as he'll have to strike huge deals with established logistics or delivery apps (possibly even including joint ventures and even more takeovers).

I'd love for the **** to go bankrupt and lose control of his little empire.
 
Mr Kobayashi said:
The underlying assets of Twitter will never generate enough income to service turn over long-term profits and service the debt.

The value of twitter to musk is the platform that he hopes to leverage and expand and diversify into other sectors, via a superapp.

The "X" bollocks he has been spouting off about. Hopefully he gets shutdown by competition regulators, as he'll have to strike huge deals with established logistics or delivery apps (possibly even including joint ventures and even more takeovers).

I'd love for the **** to go bankrupt and lose control of his little empire.
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Unlikely surely when he's worth $219 billion and rising
 
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