Elon Musk buys and ruins Twitter

[Two Gun Bob]

...You do realise they've only posted a profit in 2 of the past 10 years?

So without toddling off for an in depth read, why the $44 billion price tag?

 

[aguero93:20]

So without toddling off for an in depth read, why the $44 billion price tag?

Potential future earnings, same as most young companies/IPOs etc. Facebook had never even broken even when they went public.

 

[Two Gun Bob]

Potential future earnings, same as most young companies/IPOs etc. Facebook had never even broken even when they went public.

It seems a high price to pay for potential future earnings, but who am I to question the richest man in the world.

 

[rowarta]

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.

 

[waspish]

...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?

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

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..

 

[SWP's back]

They make around $4 billion on advertising think that will cover it

Are you for real?

The company was failing previously and that was before it was laden with additional leveraged debt. The $4bn turnover is dwarfed by its debt and its expenditure.

 

[SWP's back]

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..

The banks have warned shareholders they expect to make a substantial loss on these loans.

 

[SWP's back]

So without toddling off for an in depth read, why the $44 billion price tag?

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.

 

[aguero93:20]

He may be the richest man alive (mainly due to a tremendously wealthy father and pure blind luck)

Fixed.

 

[grunge]

Potential future earnings, same as most young companies/IPOs etc. Facebook had never even broken even when they went public.

Took Amazon well over 10 years to make a profit. every penny was going into building the business.