$44 billion for a bot hate filled chat room. Not too bright.
“$44 billion for a bot hate filled chat room. Not too bright.”
Musk is going to fix those problems, or at least greatly reduce them.
Twitter makes more than a billion dollars in revenue per quarter, i.e. multi-billion per year. It has a reasonable growth rate and a lot of untapped potential. Plus, there will likely be a synergy between this and his other companies that specialize in things like AI and Internet access, It also gives him a platform to promote the Musk brand.
A multiple of ten times revenue for a purchase price is slightly on the high side, but this is not a fire sale. Musk wanted to force it through by making an offer directly to shareholders. He originally offered 43 billion dollars and then sweetened it with another billion. More than reasonable for a company with a market cap of 37 billion dollars.
Buying an existing social media site allows Musk to save years over building a new one. President Trump has tens of millions of supporters and followers, and yet he’s struggled to do so. Truth Social has less than a million users. Twitter already has a US subscriber base about the size of Trump 2020 voter numbers (around 75 million), but it has 217 million active users worldwide. Musk has many big ambitions, and this helps him with those. Ultimately, he’s buying time. How much is years of your life when you are a billionaire?
There are many ways Musk can further monetize Twitter. He can expand chat capabilities to forums and groups. He can add a marketplace. He can add communication tools like Facebook’s phone and messaging app/service.