Twitter has been in the headlines since Elon Musk announced buying it for $44 billion. Some eventful incidents followed his announcement, and in October 2022, he became the CEO.
After announcing his interest in Twitter, he rejected buying it, claiming that the Twitter team gave him false information. This incident was followed by some legal trials, and at last, he bought Twitter.
Twitterverse has constantly been changing since Elon Musk took control. As revealed by ExpressVPN, Twitter is expected to lose 4% of its users by the end of 2023 and 5% more by 2024.
So, a lot of people have questioned whether Elon Musk’s acquisition of Twitter is a success or failure.
Elon Musk’s Acquisition of Twitter
Elon Musk is one of the world’s richest people and is the owner of Tesla and SpaceX. On 28 October 2022, he finalized the deal with Twitter after months of waffling and different lawsuits.
In April, he announced that he would buy Twitter, but in May, he put the deal on hold, saying that he was given false information.
In May, Twitter shareholders brought a lawsuit against Elon Musk as the Twitter stock had fallen more than 12% since Musk made the announcement.
In July, Elon decided to terminate his deal with Twitter, at which they sued Musk in Chancery Court. According to it, Musk was forced to pay a $1 billion termination fee.
The Court extended the lawsuit till October 2022, and Musk closed the deal of Twitter acquisition on October 28, the final day before the trial moved forward.
A lot of people think that Elon Musk’s acquisition of Twitter is not a beneficial decision.
According to a student at Harvard, this acquisition will impact other businesses of Elon Musk, which will not be good for him and other people. He believed that Twitter would be a distraction for Elon Musk.
Many researchers also believed that this acquisition could lead Musk to bankruptcy, and his need for money could doom this social media account.
Different researchers told us that Musk was the first person in history who lost $200 billion. Tesla’s stock has dropped, and he sold more stock potentially to support Twitter.
Twitter has turned into a private company which has raised concerns among different people, and they don’t find Twitter much reliable now.
Also, due to the uncertain nature of Elon Musk, many people think that changes on Twitter will always remain unpredictable. This fact is also distressing for advertisers.
A lot of advertisers and brands left Twitter after Elon Musk took control which has drastically dropped the revenue.
These advertisements were the main source of Twitter’s revenue, and dropping them can make this social media app bankrupt.
To cut off expenses, Elon Musk laid off almost half of the Twitter staff. A major data center is also closed, and he has stopped paying rent to some offices.
Despite all of these attempts, Musk himself declared that Twitter is still not safe. There are still chances of bankruptcy.
According to researchers, Twitter needs $1 billion annually to pay interest. With it, the company needs millions and billions of dollars to rebuild it with a new team.
Max Read, a technology and culture writer, writes down in his newsletter that reversing the decline of Twitter will take a bunch of money, time, and effort, and Musk has none of them.
According to him, Musk’s introduction of the “blue check” feature, in which people can get their accounts verified by paying 8 dollars, is the worst decision.
This decision has badly impacted Twitter’s growth and driven a lot of people to leave this social media platform.
Max Read claimed that Musk would need billions of dollars to return Twitter to the state in which he bought it. It means that he needed billions of more money to improve this social media app.
A lot of people also believed that Musk could handle this social media app as he is a successful owner of Tesla and SpaceX. But a lot of them just believe that he is burning money on this platform.
Wrap Up
Different facts and research told us that Elon Musk’s acquisition of Twitter was a failure as there was a high chance of bankruptcy.
Due to his policies, people stopped trusting Twitter and left the platform. Some are downloading different types of apps they can use in their spare time, for example online casino apps.
If Elon Musk comes up with a strong strategy to bring advertisers back and introduce some great monetizing features to attract creators, there are chances that this platform can survive and grow.
Let’s see what future planning Elon Musk will do to make this acquisition a success.
