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Twitter's debt payments are around ~$1b/year according to some reports. Elon really needs Twitter to start turning the ship around fast and start becoming profi
by senttoschool 4y ago
Twitter's debt payments are around ~$1b/year according to some reports. Elon really needs Twitter to start turning the ship around fast and start becoming profitable. It looks like he's trying to throw anything at the wall to get Twitter to increase profits asap.
He leveraged his Tesla shares to borrow to buy Twitter. If TSLA drops, he's going to have to provide more collateral or get margin called.
Tesla investors are definitely pissed at this deal. One, it drives Elon's focus away from Tesla. Two, it forced Elon to sell TSLA. Three, if Twitter can't shore up its cash flow, Elon will likely have to keep selling TSLA to fund Twitter.
It's increasingly looking like Elon does not know how to run a social media company. For example, he's demanding changes based solely on his opinion instead of running A/B tests to quantify the change. As someone who ran a ton of A/B tests for a product similar to Twitter's, there can be a lot of unintended consequences when it comes to monetizations. IE. It looks like your change increased revenue by 3% but it drops total revenue by 5% after 2 months.