Thursday, June 8, 2023

Elon Musk admits it was not a smart financial decision to buy Twitter

It’s been almost six months since Elon Musk bought Twitter for $44 billion, and it’s up to this point that the mogul has finally acknowledged that the investment may not have been a good decision, at least from a financial standpoint.

The subject is a controversial character with undeniable popularity. We have the perfect example of this with this permanent duality with which he lives today, as the supposedly richest man in the world, but also in a social network that we can remember.

Basically half a year after the acquisition, we can see more clearly the panorama in which Musk finds himself and the variables at stake with which he tries to float his purchase decision.

Now, though, an interesting twist has emerged, with the mogul getting honest about his opinion regarding the acquisition of one of the most popular social networks on the planet.

Elon Musk is honest and considers that it was not a good decision to buy Twitter

We recently shared some details revealed by Elon Musk in his lengthy interview with Tucker Carlson, on the controversial Fox News news network. There the executive and tycoon talked about some of the peculiar findings he came across when taking control of Twitter.

But he also took some time to open up on a personal level and weigh in on the decision to acquire Twitter and the implications it has had for his wallet:

“Whether this investment was financially smart remains to be seen. Currently it is not.

We have just revalued the company at less than half the acquisition price. I bought Twitter for at least twice what it should have been bought.”

This ends up agreeing with some previous reports where it was leaked that the stock awards to employees were based on a valuation of just US$20 billion.

Similarly, Musk sarcastically mocked himself when talking about how advertisers abandoned the platform as soon as he took over as CEO and new owner.

Given such a revelation, it is worth reviewing how Elon Musk ended up there.

Brief Recount: How Elon Musk Ended Up Forced To Buy Twitter

The whole mess began at the beginning of this year 2022, when Elon Musk began to acquire a significant number of Twitter shares, although he did not notify the stock market regulatory authorities.

The CEO of the social network, Parag Agrawal, detected this situation and then offered Elon a seat on the board of directors as a deference and measure to contain his aggressive purchase of portions of the company.

It is there that then, the creator of Twitter, has an episode of collapse and blames himself for the course his social network has taken.

Jack Dorsey and Elon Musk

Hours later it is made public that Musk raised an offer to buy Twitter for USD $44 billionthe board of directors accepts and at the same time, discreetly, shields itself in case Musk wants to escape the deal.

Elon does follow his usual pattern with this kind of proposition, where he used to buy shares in bulk to inflate their value and sell them at a higher profit. So he tries to walk away from the Twitter acquisition, oddly enough around the days of the and Tesla’s plummeting value.

As expected, he gets involved in a legal battle where everything indicates that he would have everything to lose, with an astronomical fine and without owning the social network. Although documents such as .

In less than a year, over the course of late 2021 and most of 2022, Elon Musk had lost nearly USD $110 billion of his fortune. To which we must add what he spent to buy Twitter and all the consequences that we have seen in these six months.

In the most recent turn of events, Musk himself has confessed that because he believed that he would be legally forced to do so.


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