It was announced last two weeks that Tesla founder Elon Musk has finally made his bid to buy Twitter, announcing a deal worth $44b to become the sole proprietor of the social media company.
The surprise move comes after Twitter’s board met on the weekend to vote on accepting Musk’s takeover offer, which would value Twitter at around $31b more than its current market value, and some analysts say that this could even be a bargain given how much Musk could potentially invest in the company moving forward.
Elon has been a long-time advocate of social media and, in particular, he is a well-known fan of Twitter.
He has frequently praised the service as being an excellent platform for news dissemination.
Consequently, Elon has now decided to branch out into new territory and acquire Twitter for himself.
This latest development will no doubt come as a surprise to many. Many believe that Elon’s acquisition would be extremely beneficial for both parties involved.
Who is Elon Musk?
Elon Musk is an American entrepreneur and philanthropist. He is currently the CEO of both Tesla Motors and SpaceX, as well as chairman of SolarCity.
In 2012, he was ranked 21st on the Forbes list of The World’s Most Powerful People.
The following year, Musk was named Businessperson of the Year by Fortune magazine, and in 2015 Time named him one of the 100 most influential people in the world.
Has Elon Musk Bought Twitter
Yes, Elon Musk has indeed bought Twitter, as he made clear in a single tweet to confirm his purchase of @twitter.
How Much Did Elon Musk Pays To Buy Twitter
Elon Musk Buys Twitter 44 billion Dollars. As per Google Finance, that means that Musk’s latest purchase is worth enough to pay off US student loans debt twice (at their current value) and buy Snapchat outright.
Reason Elon Musk Buys Twitter
If you think about it, paying $44b to be able to instantly reach 217 million people isn’t too bad at all.
And if that doesn’t make sense – then I don’t know what will! So, why did he do it? There are several reasons why Elon Musk might have bought Twitter:
- To Fix The Company’s Problems
- To Turn The Company Around
- For Influence And Goodwill, We’ll discuss each one below
1. ) To Fix The Company’s Problems: Do you remember when Facebook acquired Instagram for $1 billion back in 2012? Well, they didn’t spend so much money just because they like avocado toast; Facebook bought Instagram because it was struggling back then – and buying Instagram helped Instagram fix common problems
The acquisition price wasn’t cheap either – but look how well Instagram performs now compared to where it was before.
It’s clear that Facebook saw Instagram as a company with huge potential, and they were right! And I think something similar might be happening here with Elon Musk and Twitter.
After all, Musk has made some pretty successful acquisitions in his time; he purchased SolarCity (now Tesla Energy) for $2 billion back in 2016, and then bought Grohmann Engineering (now Tesla Advanced Automation Germany) for around $150 million last year. So, buying Twitter for $44bn isn’t really that much of a stretch for him – especially when you consider what kind of influence and goodwill he can gain from owning such an influential platform.
2.) To Turn The Company Around: There are many reasons why people buy businesses – but one of them is because they want to turn things around or fix them up completely. For example, Apple acquired Beats Electronics for $3 billion in 2014.
At first glance, it seemed like Apple had paid way too much money for Beats Electronics – but if you dig deeper into their reasoning behind making that purchase, there’s actually a lot more going on than meets the eye.
This means that Apple didn’t buy Beats just for its technology – they also wanted its team members! They wanted Dr. Dre and Jimmy Iovine on board. And who wouldn’t? These guys know everything there is to know about music.
3.) To Gain Influence: Another reason why companies buy other companies is that they want to use their new acquisitions as leverage against competitors to gain a competitive advantage over them.
For example, Google acquired Motorola Mobility for $12.5 billion back in 2011 – and since then, Motorola has been churning out phones that run on Android OS exclusively; meaning no other smartphone manufacturer can make Android phones without partnering with Google first!
Also check this out
10 Inspiring Entrepreneurs in Nigeria to follow on Instagram
Elon Musk Buys Twitter 44 billion Dollars: Here’s what he says he’ll do next
After Elon Musk buys Twitter, the below are things he said he will do next.
1.) Loosen up content rules in the name of free speech
Tech entrepreneur Elon Musk is one of Silicon Valley’s most respected figures. With SpaceX, Tesla, and a handful of other companies, Musk has revolutionized transportation technology
Now, Musk is in for another challenge. He has decided to purchase Twitter for $44 billion, to loosen up content rules, which will give users to say whatever they feel is right, without the fear of being banned or suspended from the platform.
2.) Create an edit button so users can change their tweets
Many people send out tweets and statements that they later regret, usually in a moment of anger or excitement. so it would be helpful if there was a way to go back and change your tweet. Elon Musk is going to take it one step further and allow you to edit any tweet as many times as you want, with no limit on edits.
3.) Open up Twitter’s algorithm to the public
As part of his offer, Elon said he would make all of Twitter’s code open-source, meaning it will be shared publicly and developers will be able to work on improving features or fixing problems. However, any changes that are made will have to be reviewed by an independent party before they can go live.
4.) Scrap advertisements
It’s clear that Twitter needs to make changes if it is going to stay competitive, but the process of transforming its business model from advertising-driven to something else will take time. Elon Musk has recently announced that he’s going to scrap the advertisement features from Twitter.
The company has already started experimenting with new ways of generating revenue, including moving some content from Twitter’s main app over to its Explore tab and offering users the chance to watch live-streamed games on Amazon Prime.
Elon Musk To Tap Twitter’s Tremendous Potential, Introduce Changes
One of Twitter’s biggest problems is engagement; users are constantly complaining about how boring it can be. The company has done some things to improve on that front, but there’s still a lot more potential in the Tweet. Elon Musk will be looking to tap into that potential and introduce changes he feels will really stimulate user interaction on social media.
How The Deal Could Change The Crypto And Stock Market Trend
Once the takeover of Twitter is finalized, Elon will have one of the world’s most powerful communication channels at his disposal, with over 300 million active users. While no details of Musk’s plan are currently known, some are speculating that he may use it to announce a secret new venture… or perhaps to announce another startup altogether.
Others speculate that Musk could be planning on using Twitter as a platform to launch an ICO (Initial Coin Offering) – which would see him raising capital by selling crypto tokens in exchange for Bitcoin and Ethereum.
Some believe he could even be planning on using crypto-tokens as a payment method on Twitter. And while we can only speculate about what Elon has planned, there’s no doubt he has our attention… again. We wait with bated breath to see what his next move will be!
Also check this out
How To Succeed With Multi-Level Marketing
What Does This Mean To Entrepreneurs?
Although his companies may seem niche and unconnected, a lot of their core ideas stem from similar patterns. And, although he’s not actively encouraging entrepreneurs to follow in his footsteps, there’s no doubt he could be a brilliant source of learning for anyone who wishes to be super-wealthy like him one day.
The following are just some lessons he has taught us so far: –
- Focus on solving one problem really well: When asked how he was able to build such successful businesses, Elon pointed out that it was all about focusing on one thing at a time:
If you read or listen to enough interviews with him, you’ll find he says these words again and again. Whether it’s SpaceX or Tesla, what makes each business different is its ability to focus on solving one problem really well – whether that means designing affordable electric cars or launching rockets into space.
Elon’s success lies in how he has tackled each new challenge. He brings all of his knowledge and experience to bear on each new project, ensuring that he puts all of his energy into achieving one thing at a time.
Where others might dilute their efforts by spreading themselves too thin, Elon is able to draw on a multitude of past successes as he continues to innovate.
