Elon Musk is apparently going to follow through with the contract that he signed with Twitter and pay $44 billion to acquire the company. As I wrote here before, I’m not a Musk fan. I imagine there was a huge amount of fussing and fighting within the Musk universe until his lawyers finally got him to realize that his case was a loser and that he’s on the hook for specific performance (i.e., buying Twitter at the agreed-upon price) since he breached the contract in multiple obvious ways. It would be a big psychic blow to Elon to lose in court, so here we are.
I hate to make predictions about capricious assholes, but I have a few:
- As soon as he has keys to Twitter, Musk will overrule some user and content bans, and he may do something big and splashy like re-instating Trump. But I doubt he’ll make long-lasting significant changes since he lacks the attention span.
- Twitter will be worse as a platform and probably no better as a business, continuing a meh-at-best profitability record under Musk.
- Musk will soon lose interest and probably quietly sell his shares at a loss in a few years.
Twitter is a for-profit company, and the board did a good job tying Musk down with the contract to get shareholders a good return. The fundamental fact is that Twitter’s penetration has lagged the big socials (Facebook and YouTube), and the youngs are more likely to use Snapchat, YouTube and TikTok. Elon isn’t going to change that by doing a little feature twiddling and letting more fascists onto the platform. I realize that Twitter is the de-facto social media standard for political junkies, but we’re just a small part of the social media demographic. The real financial action is elsewhere, and Musk got suckered into a bad deal, no matter how much lipstick he’s going to try to put on this pig.