ELON MUSK bought a nine percent stake in twitter but Why Elon Musk Bought Twitter ? well, this is actually old news, He bought this steak yesterday. The new news the breaking news is that he’s now on twitter’s board. So he was immediately put on twitter’s board after buying the large stake and this brings in the question what is elon’s master plan. Here what is Elon Musk trying to accomplish. This is one of the most powerful individuals in the world. maybe the most powerful by some quantifiable measures and now he’s on the board of directors of one of the most influential companies in the world so we’re going to talk about what elon musk’s real plan….
Why Elon Musk Bought Twitter?
Elon musk purchased 9%of twitter and he can do that because he has a lot of money in fact he could buy a lot more of twitter if rules and regulations didn’t prevent him from it but now he owns nine percent of the company and this was breaking news as of yesterday just that news alone launched twitter shares up around 25% in one day so the company gained more in a single day than it ever has since its ipo and in that single day of the 25% increase elon musk made over 500 million dollars on his investment to put that in perspective that is more than twitter’s entire net income for the past three years.
How much Elon Musk Earned from Twitter in a single day?
elon musk made more money in one day off of twitter stock than the companies made in the past three years. This is big news in and of itself but then there’s discussion on well what does he intend on doing right is he going to have a passive stake or he kind of just owns the company and has it as an investment or is he going to take a more active role and many people actually assume that he would take a passive stake that is an assumption.
I think is ridiculous when you look at someone like elon musk is he really that passive in anything this man is the most active on the forefront ceo of almost any company and i didn’t think he was going to buy twitter to take a backseat in the company. Well of course the very next day which is today elon musk is now joining twitter’s board of directors and he’s teasing significant improvements so he’s making it very clear that this is not a passive stake he’s on the board of directors he’s now in part helping run the company. elon musk plays a unique role in this because typically when you have someone join the board of directors they don’t have the same type of voice that someone like Elon Musk does.
So now the situation that we’re in is elon musk owns nine percent of the Twitter. the company’s stock price is up 33 in the past two days and he’s joined twitter’s board of directors so this leaves the question ‘’what does he plan on doing now’’?
What does ELON MUSK plan on this?
This is where i think we’re getting some good takes and a lot of bad takes here’s where i think we get a bad take of why elon musk bought twitter this is from rich greenfield he goes on to explain how investors are overlooking the user growth of twitter more than anything it’s certainly highlighting twitter’s had a lot of progress momentum on the user growth side that investors simply ignored after the last quarter because of the cost side of the equation so elon musk bought twitter because investors are ignoring twitter’s user growth this is not about uh profits and losses and user engagement and you see what it’s about actually i disagree i think it is about users why isn’t he fun why isn’t he scouring the the broken you know all the the fallen angels and tech and taking stakes and all of this this one is one you’re missing the point you’re missing the point the reason he’s making these comments about open sourcing.
You know kind of the town hall like this whole way he’s thinking about it is because twitter has gotten so big and so important that he believes that there should be different algorithms or different ways of information ferreting up to the top he wouldn’t care if twitter was irrelevant and tiny and not growing as rapidly as it is he wouldn’t care so i think the point is he does care.
Because twitter is relevant twitter is a relative you’re missing a point i’m making he’s not doing this to try to juice the stock and make some money like an activist investor to try to open up shareholder values so he can make some money. He’s doing it because he wants to change the way that twitter’s being run right now in terms of censorship and uh and everything else you don’t think that that’s what he’s doing here you think it’s purely an economic play that he’s making why didn’t he buy there’s a lot of cheap companies out there that he’s not interested in i think this breaks down in large part the argument happening over twitter. A lot of twitter’s shareholders might think that ”elon musk is buying twitter for economic reasons he’s buying it because the company’s undervalued and elon musk sees value there and then there’s the joe kernan side of it …
What JOE KERNAN said when elon musk purchased twitter?
JOE KERNAN is saying that ”the economics have no part in this the valuation of twitter has no part in it elon musk is buying twitter for entirely different reasons. and i have to say this is one of the cases where i strongly agree with joe kernan now rich goes on to make another assumption that i think is clearly false i don’t think it’s true at all here’s what he says regarding elon’s ability to make change at twitter. i mean nine percent stake’s not going to give him the ability to change the he’s got to own a lot more than 9 to have an impact on how this company runs.
Well you’ve got to start with with 9 you can’t you know you can’t start with 60%. He says that 9% isn’t enough to make change at the company it’s not enough to impact the company at all and just a day later after this interview elon musk is on the board of directors and saying that he’s working closely with them and advocating for great changes to the company. If we’re going to look at why elon musk is buying twitter i think it’s first important to understand incentive here elon musk has literally no incentive to make more money he has all the money he could possibly spend in a hundred lifetimes. He’s worth currently 267 billion dollars that is over a quarter trillion dollars most of us look through things through the lens of economic value.
elon musk has literally no incentive to make more money he has all the money he could possibly spend in a hundred lifetimes he’s worth currently 267 billion dollars that is over a quarter trillion dollars most of us look through things through the lens of economic value. We want to create more wealth we want to get more wealthy because right now we don’t have enough money to fully retire or we don’t have enough money to get all the things that we want elon musk has solved this problem long ago and money hasn’t been his primary motivator. i think for a very long time i think that his aspirations are far beyond that and we can get an idea of what elon musk’s aspirations are by previous things that he said on twitter. He was quickly welcomed to the board of twitter quote through conversations with elon in recent weeks it became clear to us that he would bring great value to our board the ceo prague said quote he’s both passionate and a believer and intense critic of the service which is exactly what we need on twitter and in the boardroom to make us stronger in the long term. So the ceo of twitter is very welcoming to elon musk and i think he should be elon musk creates a lot of value with most things that he’s involved in.
Why Elon Musk Bought Twitter?
Elon musk purchased 9%of twitter and he can do that because he has a lot of money in fact he could buy a lot more of twitter if rules and regulations didn’t prevent him from it but now he owns nine percent of the company and this was breaking news as of yesterday just that news alone launched twitter shares up around 25% in one day so the company gained more in a single day than it ever has since its ipo and in that single day of the 25% increase elon musk made over 500 million dollars on his investment to put that in perspective that is more than twitter’s entire net income for the past three years.