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Old 04-26-22, 01:56 PM   #13
Bilge_Rat
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well, personally, I don't think Twitter will change all that much.

Elon Musk is an entrepreneur first. He is risking U.S. $44 Billion of his own money into this. From what I have seen of the financing structure, he is essentially using up most of his personal collateral and personal borrowing room to close this deal. If it goes south, he could lose big.

Twitter is a valuable property, visited daily by millions of people, most of which are successful adults in the 30-40s in their prime spending years which are what most advertisers are looking for, but it does not look like Twitter was run that efficiently.

Twitter's gross revenue in 2021 was U.S. $5 Billion up from U.S. $3.4 Billion in 2019, but Twitter actually lost money in 2021 down from a profit of U.S. $1.4 Billion in 2019 and the stock price was at U.S. $77 one year ago. Twitter is one business which should have profited from the Pandemic when people were stuck at home.

So by one metric, you could argue it is actually a good deal at U.S. $44 Billion...

However, to justify the investment and get a decent return of say 10% per year, he will have to increase revenue and slash costs, so at this point I would see his "free speech" spiel as more marketing than anything else.
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