Mr. Elon Musk has been issuing notice on about his intentions to acquire Twitter and take it private. Previously, Musk found himself subjected to a Security Exchange Commission (SEC) over a Twitter post planning to take Tesla private, in 2018.
Twitter is a publicly traded company, which is good for investors, regarding the Elon Musk acquisition. TechCrunch states that an SEC filing revealed a bilateral termination fee. This termination fee requires either party, buyer or seller, to pay the other party $1 billion if the other reneges. He would also likely step in for the role of Twitter Chief Executive Officer (CEO).
Regarding a high-status person's ability to affect consumer behavior, Forbes defined The Oprah Effect as:
The power to influence public opinion, especially consumer purchasing choices.
As CEO of Tesla, Elon Musk withstood speculation that he was deliberately sending tweets to affect the Tesla stock price, though he was eventually official questioned by the SEC. The United States Department of Justice (US DOJ), published the indictment of world-renown cyber-security software developing entrepreneur , John McAfee, and his cryptocurrency team in 2021. The indictment stemmed from the deceptive use of McAfee’s Twitter account to publish messages to hundreds of thousands of his Twitter followers touting various cryptocurrencies. The scheme netted an estimated $13 million.
To gather the appraised $44 billion needed to acquire Twitter, Musk he told investors he would double or triple their money in a year, according to the NY Post. Ofcourse, astute business investors need more than Musk's good name and work to make sense of their investment. According to the New York Times, Elon Musk recently presented his investors with a 'pitch deck'; a formal marketing presentation for investors. The pitch deck included 5 projects that would increase revenue on their investment
- Increase annual revenue from $5 billion annually, to $26 billion by 2028.
- Increase revenue per user by $5.39 by 2028. Currently, Twitter generates $24.83 per user, and Musk seeks to raise that to $30.22 by 2028.
- Have 931 million users by 2028. Twitter currently has 217 million users and musk expects to have 931 million by 2028. He expects 600 million Twitter users by 2025.
- Undisclosed Product X to gain 104 subscribers by 2028. The New York Times mentions that Produce X could be subscriber based, as Product X subscribers (according to the presentation) are expected to be 9 million in 2023.
- Hire 3,600 employees - Musk presented to his investors the addressing of increasing stock options for employees. Currently, stock options for employees were at $914 million. Musk hopes to raise that to $3 billion by 2028.
Twitter currently has a service called Twitter Blue. Twitter Blue is a subscription service that costs $3.49 per month. It allows users to undo tweets and have special access to new and upcoming Twitter features. Recently, Mr. Elon Musk revealed his desire to make Twitter ad-free. With the changes Musk brings to companies, and his positive affect on companies as CEO, twitter users and shareholders can expect exciting changes to the Twitter platform under Musk.