How much benefit can the acquisition of self-media bring to Musk

Why did Musk start the buy-buy-buy model? In fact, the reason behind it is very simple. Now that inflation in the United States is so high, he does not spend money, is he waiting for depreciation? In addition to spending money in the dream of the rich, especially the management-level technology upstarts who have made a fortune in Silicon Valley through entrepreneurship to obtain company equity, the money spent is different from that of traditional local tycoons. Many of these tech tycoons were born in the fields of science and engineering. They may not have much interest in luxury-plus-plus luxury.

Especially in Silicon Valley, people don't really pursue this. There is a gossip around that Tesla had a VP-level person before, and the equity cashed out $2.7 billion. He bought a bunch of houses around Silicon Valley, but he couldn't use them up, so he had to go to France to buy a winery. You see, having money and not knowing how to spend it is already a headache for Tesla VP employees, not to mention Musk himself.

Anything that rich people buy will attract criticism, but the fact that rich people buy the media is considered valuable in public opinion. In fact, it makes sense. But it's hard to imagine Musk, a self-absorbed man, choosing to buy a traditional medium. Well, if Musk wants to buy media, he has to buy a social media.

And that actually means Twitter is at a very awkward crossroads. As the two major social media in the United States, Twitter has always been at the center of public opinion, often used to do the right thing. However, the two companies differ considerably in terms of operating performance and share price performance.

Twitter went public in November 2013 at a share price of $41. Today, its stock price is just over $50. This is still the performance of the stock price after the good news of Musk's privatization of Twitter. Let's see again that we must die. It should be called metal now. When it went public in 2012, it was priced at $38. Now its share price has reached $184. Remember that this is still the price after the recent bear market.

For information service users, they use Twitter to view the remarks of public figures, the news agencies, and the information of authoritative organizations. This also leads to a good number of Twitter registrations, but not a high number of daily active users. On the other hand, information must not be used to serve social relations, to serve social relations. So, in addition to following celebrities, you'll also follow your friends, post your own news, generate more interactions, and have more user data for more accurate ad serving. So, in contrast, ads on Twitter are relatively difficult to attract users to click, and it is more difficult to convert, which makes the cost of advertisers higher. Twitter is clearly commercially profitable. Since the failure of the listing, he has only been profitable for two years, and has lost money in other years, but his management team and board of directors are even more unqualified.

In the past two years, US technology stocks have followed the post-epidemic response, the United States response to monetary and easing policies, and stock prices have soared. What is Twitter doing? Three words, engage in infighting. CEO Dorsey runs both companies at the same time. Another company can be understood as Alipay in the United States called block. The board decided his idea wasn't on Twitter. Third, Dorsey's personality is unstable. People around said he was shaky in replying to messages. For example, when everyone was discussing something in the group, Dorsey suddenly disappeared for a long time.

After a long time. Everyone found out he had gone to practice yoga. It is estimated that no board can tolerate such a CEO. Therefore, the board has always wanted to get rid of its level of detail. So in 2020, Aliman, a capital known as the CEO killer, wanted to remove Dorsey from Twitter, but Silver Lake Capital invested $1 billion in it, leaving Dorsey's CEO only for temporary retention. But in November 2021, Dorsey finally resigned and handed over CTO CTO CTO CTO Agwa as the new CEO.

At the same time, Dorsey will leave the board after the expiration of the term of office at the 2022 annual general meeting. That said, now that Musk has acquired, this time it's when Dorsey intends to step down from the board. This was the most chaotic period inside Twitter. Chaotic boards, poor management.

As a co-founder of Twitter, when Dorsey is no longer involved in Twitter's decision-making, then the company really needs a new soul to lead and save, so who is this soul? At this point, Musk struck.

While we saw the cube on Twitter's board of directors objecting in the first few days of the opening, then there were various indications that a lot of people on the board were willing to make the deal with Musk. Of course, this may also be related to Dorsey's support. Together with Musk, it also proves that there are enough sources of funds to complete the transaction, so, combined with many considerations and perfect timing, this acquisition can be said to be an extremely smooth negotiation.

Now that it has been determined that the next soul of Twitter is Musk, how will Musk transform Twitter? There is no doubt that Musk is full of ideas about Twitter's governance. It feels like he can't wait to make a big deal overhaul of Twitter. On various channels, Musk has proposed many, many features for Twitter, including adding editing features and verifying user identities.

Let's think about what else can be done after privatization? First of all, Twitter is no longer a public company, so he doesn't have to explain it to investors or do some short-term business for profit. Change things. Second, when Twitter became a private company, it still had a lot of room for imagination in the crypto world. It also made some attempts at Dorsey's Twitter, which also launched a program called Blue Sky in 2019.

Blue Sky Program

Blue sky means that birds fly to the blue sky, so this means a good meaning. This is the blockchain technology proposed by Dorsey to achieve decentralization. protocol, rather than a centralized content platform. Initially, the program was also funded by Twitter. But three years have passed because of board obstruction, and now the plan has become a project that has nothing to do with Twitter. The decentralized protocol project that Dorsey personally supports, although Blue Sky has not succeeded, but now the Twitter Cervical Spine Club has made a Twitter space, which is online real-time voice interaction.

The platform has turned the Twitter space into a live streaming base for the cryptocurrency circle. Twitter is also the first social media company to display FT avatars. Let's start with the background of Twitter's interim CEO Agwa. When we chose Agwa as Twitter's CEO, Agwa was also a key figure in helping Twitter with a series of decentralizations.

As a result, Twitter has the potential to further embrace the crypto space. However, listed companies have financial pressure from listed companies, and it is difficult to subvert themselves. Now, the value of privatization is already emerging. Of course, we never use the word web3.0 in this description because it dilutes the staunch believer in Bitcoin, but he has this ironic attitude toward the concept of web3.0, and so does Musk, so even if Twitter's next step is to reinvent the direction within the crypto circle, the exact method and speed are unknown.

To solve this problem, however, Musk is the only solution I trust. Dorsey wrote in parting, traveling around the world, walking into the stars, I personally like this ending very, very, very much, bringing a very romantic fantasy to this business acquisition, in the world, in the stars, when the ideal is capitalized and lying in all kinds of mud, you may be able to see the combination of Musk and Dorsey. Can Twitter break the advertising-dependent business model of social media platforms? How do you move from a company to a protocol-level public good? We don't have answers to these questions yet, but the only certainty is that if Dorsey's ideas can actually be implemented by Musk, then the era of Web 3.0 may really be here.