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If you're buying Twitter to maximize value as soon as possible then reducing cost to the bone and maximizing earnings would make sense. It's how many private eq
by WheelsAtLarge 4y ago
If you're buying Twitter to maximize value as soon as possible then reducing cost to the bone and maximizing earnings would make sense. It's how many private equity funds would maximize value to sell it at the earliest point.
Musk is different. He wants to maximize value by innovation. It's very risky. I would say that Marketing and Sales are probably the most important right now. R&D is next, since Musk wants to change its course. Reducing them to the bone will probably backfire.
Reducing head count is probably imperative since it reduces cost plus new hires will have a different mindset that's in line with what Musk wants to accomplish. He'll probably replace most top management ASAP. I suspect that we'll be hearing a lot of bad news from Twitter from people that get laid off and feel it was unfair.
He'll also try to fully automate (thru AI) as he tried with robotics in Tesla - but backfired. Full automation is hard there are just too many variables. He'll see that and reverse course. I expect there will be a lot of drama coming from the company but ultimately Twitter will change course. It will be interesting.
He's making sure he has total control over the company so what ever he decides to do will be done without opposition.
People that think he will ruin the company are wrong. It will take time but the investors will get a very good return on their investment.
- nikau 4y agoOr Musk had a search run on all the tweets posted by each employee and wants to sack the twitter staff who said mean things about him.
- filoleg 4y agoI seriously doubt that 75% of twitter employees even use twitter, let alone for posting "mean things" about Elon. Mostly given that twitter "only" has 40mil mDAU in the US[0]. Of course twitter employees probably have higher rates of twitter usage than an average person in the US. But I still find it unlikely (but not impossible) to be anywhere even close to 75% for usage, and, out of those, much less for posting about Musk. 0. https://investor.twitterinc.com/financial-information/financial-releases/ https://investor.twitterinc.com/financial-information/financ...
- nikau 4y ago
- tinyhouse 4y ago> It will take time but the investors will get a very good return on their investment. I think you're underestimating how much money he's paying for Twitter. Just for comparison, Snap's current Market Cap is $12.5B. He's buying Twitter for $44B. Both companies make about the same annual revenue with Twitter losing less money but still losing money.