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Twitter doesn’t have interests beyond making a profit. The shareholders of Twitter don’t have interests beyond making a profit. The company’s owners are aligned
by bigyikes 5y ago
Twitter doesn’t have interests beyond making a profit. The shareholders of Twitter don’t have interests beyond making a profit. The company’s owners are aligned with Twitter insofar as they both seek maximal return on investment.
Just because the interest of the company’s owners is small does not mean the interests aren’t aligned. In other words, magnitude != direction.
The board of Twitter has maximal power, but minimal interest. The owners of Twitter have minimal power and minimal interest too, relative to their other holdings, but maximal interest relative to the board.
- deleted 5y ago[deleted]
- vba616 5y ago>The shareholders of Twitter don’t have interests beyond making a profit The shareholders of Twitter generally have 99.9% of their assets in other companies. Therefore their interest in profits doesn't necessarily translate to an interest in Twitter profits. Even with the most abstract theoretical profit-maximizer model, damaging 99.9% of your investments in favor of 0.1% is not how an entity would act. This is generally a good thing, but it's also what people are complaining about with the board of directors. If shareholders and directors are not diversified, then they can make a lot of money through destroying democracy, poisoning rivers, whatever, and then escape to New Zealand or somewhere. You know, "externalities". Monopoly-guy in a top hat. But if they are diversified, then the profits are not worth it to them, because many of the externalities are now internalized.