How did Musk and Twitter "break up" for more than half a year?

Musk has made new progress in the farce of Twitter. Last week, Musk announced the cancellation of the original Twitter acquisition.

In the letter to the Twitter company submitted to the US Securities and Exchange Commission, he accused Twitter accusing Twitter the "false and misleading statement" on the platform on the platform. Musk accused Twitter that he did not obey his obligation and provided him with data and information of business evaluation.

Musk's lawyer Mike Ringler wrote: "Twitter sometimes ignores Mr. Musk's request, and sometimes refuses these requests for no reason. Incant or unavailable information. "

However, such a reason cannot be retired from Musk. He may face a protracted legal war. According to a new document from the US Securities and Exchange Commission, Musk needs to pay at least one billion US dollars for acquisition and termination fee.

Sure enough, Twitter sued Musk on July 12 to violate the acquisition contract, saying that his withdrawal strategy was "a model of hypocrisy" and asked him to acquire this social media company for $ 44 billion.

How did the three -month Twitter acquisition of the storm be in this situation?

Twitter acquisition storm

Musk's plan to acquire Twitter is not "the rush is screaming, and the acquisition should be acquired". In fact, as early as January 31 this year, Musk had purchased Twitter stocks secretly. By March 14, Musk had accumulated more than 5%of the shares, but he did not disclose his investment to the US Securities and Exchange Commission in accordance with regulations, but began public criticism of Twitter.

The first cannon hit Twitter algorithm. He felt that the bias of the Twitter algorithm would have an inestimable impact on the public.

Muskrui Relief Evaluation Special Algorithm | Twitter

On March 25, Musk then initiated a vote and asked everyone if he was free. A total of more than two million people participated in this vote, and nearly 70 % of the participants chose. Musk thought that Twitter's behavior broke democracy and felt that people might need a new platform.

Is Twitter's freedom of speech? | Twitter

Despite Musk's appearance on Twitter, he has been secretly promoting his acquisition plan.

On April 4, Musk announced that he had successfully acquired 9.1%of Twitter's shares at a price of US $ 2.64 billion on March 14, becoming the largest shareholder of Twitter. After the news was made public, Twitter's stock price has gone through the largest stock price increase since the first public offering, and the increase in the market is as high as 27%.

On April 5th, Twitter invited Musk to join the company's board of directors that the condition was to prohibit Musk from occupying more than 14.9%of the shares to be accepted by Musk. On April 10, before the appointment of Musk, Musk published several tweets who criticized Twitter and canceled the decision to join the board of directors. Obviously, Musk has greater ambitions for Twitter.

On April 14, Musk announced that it was acquired for Twitter at a price of $ 54.20 per share, with a total price of $ 44 billion. At first, Twitter's board of directors announced the launch of the "Poison Pill Project" to prevent Musk from acquiring, and approved shareholders to purchase additional stocks when malicious acquisitions occurred. But on April 25, Twitter had to accept Musk's acquisition proposal.

However, the incident was not so simple. The acquisition reached in a round of water wars was finally "eaten" by Musk. On July 8, Musk announced the cancellation of the original Twitter acquisition.

Musk's big cake for Twitter

According to the New York Times report on May 6, Musk showed investors his grand Twitter plan and his financial goals. Musk's report said that by 2028, he would turn Twitter's income five times to $ 26.4 billion. It is also necessary to reduce Twitter's dependence on advertising to less than 50%of income.

Twitter will receive a revenue of $ 15 million from the payment business in 2023, and will increase to about $ 1.3 billion by 2028. Given Musk's success in PayPal, Twitter may also have a payment function similar to WeChat.

By 2028, Musk claims that he will make the number of Twitter users reach 931 million. At the same time, he will also launch a new subscription service. This mysterious service has not been named, and X is temporarily referred to. Although the documents are not detailed, according to Musk's hint, this service should be a Twitter without advertising. This subscription will be launched in 2023 and is expected to have 9 million users a year.

In addition, it is the issue of layoffs that Twitter employees care about. The document shows that by 2025, Twitter is expected to have 11,072 employees. Although Twitter currently has only about 7,500 employees, according to Musk's forecast, the number of employees will increase to 9,225 in 2022, and then decreases to 8,332 in 2023. In other words, the Twitter Association in 2023 ushered in the layoffs of nearly 900 people.

Musk distributed a promotional information to investors, outlined his grand plan for Twitter | Reuters

Learn WeChat, delete BOT, Musk's new Twitter

In just a few months to reach a acquisition agreement with Twitter, Musk has passed the CEO's addiction, and each time it proposes to conduct a hot search for Twitter's large action rectification. The thoughts he had moved in these months was:

01

The algorithm open source, rectification Twitter

After Twitter accepted the acquisition transaction proposed by Musk, Musk issued a push that his first plan after Twitter was to open source the Twitter content source ranking algorithm to ensure justice. At the same time, he also plans to delete spam robots and verify all real users. He will also add a "Edit" button to Twitter and conduct democratic voting for the proposal. According to the US commercial media Business Insider, Musk also plans to transform Twitter's headquarters in San Francisco into a stray man. He claims that "Twitter employees don't come to work in the office anyway." Six hours after Musk's public opinion survey, most users voted for approximately 91% of the 912,867 votes to "YES".

02

Learn WeChat, learn Douyin

On June 16, Musk was late for 10 minutes at his first Twitter Conference. Although he just picked up his mobile phone at will and joined the meeting at will, his speech showed his preliminary ideas for Twitter. At a video conference, he told Twitter employees that if the company wants to achieve his goal of reaching 1 billion users, he needs to become more like WeChat and Tiktok.

Musk's first Twitter Employee Conference | Twitter

Musk believes that WeChat is a super application in China, and integrates social media with payment, games, and even taxi. "There is no software that is equivalent to WeChat outside China. In China, you basically live on WeChat. If we can use Twitter to reproduce this point, we will achieve huge success," Musk said in the video conference.

He also praised Tiktok's algorithm is not "boring". "We can improve Twitter in the same way," he said. "I think Twitter can do better in spreading serious topics to the public."

He also mentioned the topic of freedom of speech that he was most concerned about before, "the law can not be prohibited", and people can say what they want to say. Musk also hopes that Twitter employees can work in the office, but excellent employees can also work remotely. I do n’t know if the hard regulations that can be remotely working in Tesla 40 hours a week in Tesla will not be able to recover in Twitter in the future. carve……

When asked what the success of Twitter within 5 to 10 years, Musk said that Twitter should "contribute to a stronger and longer civilization so that we can better understand the essence of reality" Essence

03

Iron fist strike, delete robot accounts

Musk has been paying close attention to Twitter's BOT zombie issue after acquiring Twitter. Although Twitter has long claimed that he has only 5%of robot users, Musk believes that this number may reach more than 20%.

On May 13, Musk had suspended the acquisition due to Twitter robots, warning that Twitter's acquisition case may be canceled due to robotic problems. Too many robot users will affect Twitter's advertising income. For the company's financial health, it is necessary to rectify the robot account.

Musk did not believe the investigation submitted to him by Twitter, and he asked to obtain the internal information library of Twitter in order to arrange analysis by himself. Twitter did not cooperate with his last reason to terminate the acquisition.

Musk regrets, maybe he wants to press the price

Originally, Musk's quotation for Twitter for a total of about $ 44 billion was considered to be too low because Twitter's transaction price was more than $ 70 per share last year. However The market has fallen sharply. As of the closing of July 8, Twitter's stock price was about $ 37 -the day when Mask announced the acquisition of nearly 30%.

So Musk's showdown may be because "buying expensive." It is not impossible to re -acquire it after the price is pressed. Some Wall Street analysts said that after Musk's tossing, the morale inside Twitter is now very low. The board of directors and management of Twitter should consider receiving a lower purchase price to avoid damage in the long legal struggle. In the end, talents can't even sell at low prices.

Angelo Zino, an analyst of CFRA Research, said: "It is impossible to be sold at the original $ 54.2 price. Either the purchase quotation fell 15%to 20%, let Musk signed the contract, or it depends on him. Continue to play the robot card. "

No matter how chaotic Musk's actions for Twitter, there seems to be only one goal, that is, you don't need $ 44 billion to acquire Twitter. Musk and Twitter's "love and kill each other", I don't know how to end in the end.

references

[1] Isaac, m. (2022). Inside elon musk's big plans for twotimes.com. Retrieve 1 july 2022, from https://www.nytimes.com/2022/05/06/technology/elon-amusky -twitter-pitch-dled.html.

TWEETING-AMID-TWITTER-TAKEOVER-BID-2022-6. [3] Heath, A. (2022). Elon Musk Tells Employees He WANTS TOTTER to Be More Like WeChat and Tiktok. Retrieved 1 JULED 1 JULED 1: //www.theverge.com/2022/6/16/23171054/elon-musk-twitter-deal-billion-users-wechat-tiktok.

Author: Shashi Billy

Edit: Turn over

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