While he is not even officially the owner yet, Elon Musk is already planning to put Twitter back on the market within 3 years. According to information from wall street journal published on May 4, he would have announced it to representatives of private equity firms that could help him acquire the social network.
Three years and then goes?
This is a fairly standard strategy for this type of business: buy a company in bad shape, put it back on its feet, often to the chagrin of the employees, then put it back on the market after 5 years.
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This would obviously be Elon Musk’s strategy for Twitter. The latter has solicited investors who could participate in its share of the 44 billion dollars required. Part of the sum will be recovered in the form of a loan and the billionaire has promised to take out of his pocket 21 billion dollars. He has already started withdrawing Tesla shares to raise the loot, but is clearly looking for other ways to finance himself.
According to wall street journal, private equity firms would already be interested. This plan within three years of Elon Musk tends to ensure the investment of the billionaire in his future new company.
The latter has already given several ways to improve the profitability of the social network. He mentioned a reduction in the salary of the Board of Directors and senior executives of the company. Rumors are swirling about potential layoffs. The billionaire also mentioned the possibility of charging certain accounts, commercial or government…
Twitter will always be free for casual users, but maybe a slight cost for commercial/government users
— Elon Musk (@elonmusk) May 3, 2022
For the moment, no specific global project has been unveiled, it is not Musk’s habit to do so. As much as rapidly introducing leaked changes in dribs and drabs comes as no surprise coming from the character, Twitter’s stock market return slightly swears with his previous speeches.
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Elon Musk, who proclaims his love for the social network, has sometimes said that he does not particularly intend to make money with it. He also seemed to share in part the vision of Twitter co-founder Jack Dorsey, making the platform a public place that should not belong to anyone and especially not to Wall Street.
Obviously, Elon Musk will have the possibility of remaining majority shareholder of the company if he is reintroduced, like the situation with Tesla where he is the big boss. In addition, the billionaire is not necessarily recognized for the reliability of his announcements or the respect of schedules: he had declared a little quickly on Twitter that he had the capacity to privatize Tesla.
For the moment, Elon Musk’s priority is to finalize the operation. It still needs to get approval from shareholders and regulators, which shouldn’t pose too many problems. He should get the keys to the platform later this year, so he’ll have plenty of time to think about what to do next.