Why Elon Musk Bought Twitter?

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

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.

Leave a Reply

Your email address will not be published.