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Why Is Twitter Worth So Much to Elon Musk?
Elon Musk purchased Twitter. Its founder Jack Dorsey struggled to make it profitable. And while Musk owns a stake in Twitter, his acquisition of the company seems a bit out of place. We’ll look at Dorsey’s struggles, Musk’s stake, and Tweet Binder’s engagement economic value. And we’ll conclude with a discussion on Twitter’s future. But first, what’s it worth to Musk?
Elon Musk’s acquisition of Twitter
Twitter has become a hot topic these days, with news reports about its acquisition by Elon Musk becoming a topic of conversation. With more than 200 million monthly users, the social network is one of the largest online communities. Although the deal is still in the works, experts have said it’s likely to close within 24 hours. Read also : How to Ask Someone to Follow You on Twitter. However, there are certain questions that remain. If Musk is going to complete the acquisition, what will happen to Twitter’s users?
The acquisition of Twitter will create a new company. Musk will have a 9 percent stake in the company. Previously, the company’s founder, Jack Dorsey, stepped down as CEO, but he’s now back in the driver’s seat. Musk has already lined up $46.5 billion in financing and put pressure on the Twitter board to reach a deal. Twitter will become a privately held company.
Dorsey’s struggles to make it profitable
The recent decline of Twitter’s stock price has put a lot of pressure on CEO Jack Dorsey and his team to create a plan for a return on investment. As CEO, Dorsey has a broad mandate for Twitter: making it profitable, attracting more users, and becoming a worldwide news service. This may interest you : How to Make Your Twitter Account Private in 2022. He has declined to comment for this article, but he has made it clear that he has five main priorities for Twitter. These include improving the user experience, safety, live video, and outreach to software developers.
As CEO, Jack Dorsey must balance his time between Square and Twitter. Square, a recurring revenue business, is profitable and has attracted a loyal team. Twitter had failed to grow in size under Dorsey, and it’s now worth a fraction of its former value. But, Twitter’s struggles with profitability aren’t a sign that he’s given up on the company.
Musk’s own stake in the company
After publicly stating that he will never start a rival social media network, Tesla Motors founder Elon Musk has reportedly bought shares in Twitter. Analysts are skeptical of his motives, but he may have purchased the shares as a way to influence Twitter’s future. This may interest you : How Do You Pick a Winner on Twitter?. Musk could also be preparing to take an active stake in Twitter in the future. Analysts believe he may end up taking an active ownership role in the company, which has fallen from its high of $73 last week.
In response to the criticism, Musk has made a surprising move. He has acquired shares in Twitter in order to be on the company’s board. He also asked Twitter’s followers if they support free speech. However, Musk’s investment in Twitter is still not enough to get him an executive role. He’ll need the support of other board members and Twitter shareholders before he can do that. As the CEO of Tesla, Musk is clearly interested in making his company more powerful.
Tweet Binder’s engagement economic value
Tweet Binder’s new feature, Twego, enables you to determine the value of a tweet, its market economic value, and its engagement economics. Twego is extremely easy to use, as all you need to do is type in the Twitter account’s name. A graph will appear, showing two different values for the same hashtag based on different criteria. With this information, you can quickly determine how valuable your Twitter account is.
The reports are easy to read and create, with detailed insights and analysis of search-term content spread across Twitter. They also provide insight into accounts that use particular search terms. The platform even features an influencer identification function. While Tweet Binder does not come cheap, its engagement economic value is unmatched. Here’s how it works:
Musk’s PEG ratio
It’s unclear what Elon Musk is banking on when he buys Twitter. While the company has huge potential for future monetization and is one of the largest shareholders in the company, Musk’s recent purchase could derail the stock’s positive trend. If Musk’s acquisition doesn’t pan out, Twitter stocks could fall as low as $26 a share, nearly 52% below Musk’s benchmark purchase price.
As a result, some analysts worry that the Twitter stock could plummet. Elon Musk has already made headlines with his Tesla acquisition, converting it into a profitable company. But the billionaire recently announced a deal to buy Twitter for $44 billion. This deal comes on the heels of Musk publicly acquiring 9% of the company in the weeks leading up to the announcement. The Twitter Board of Directors approved Musk’s plan to privatize the company on April 25.
