Elon Musk says he is "overpaying" for Twitter but still believes in its incredible potential

midian182

Posts: 8,484   +104
Staff member
In brief: Elon Musk has shed more light on his takeover of Twitter and the $44 billion it's costing him. The world's richest person praised the platform's incredible potential but admitted that he is "obviously overpaying" for the company.

Speaking during Tesla's earnings call yesterday, Musk addressed the long-running and controversial Twitter deal that was first announced back in April. After the automaker's CEO pulled out of the acquisition over claims that Twitter was being untruthful about how many fake/bot accounts are on the site, Musk eventually agreed to go ahead with the purchase at the original $54.20 per share earlier this month, making the whole deal worth around $44 billion.

"Although obviously myself and the other investors are obviously overpaying for Twitter right now, the long-term potential for Twitter in my view is an order of magnitude greater its current value," Musk said in a call transcribed by Insider's Tim Levin.

Interestingly, there are reports that Musk and Twitter almost agreed to reduce the acquisition price to $50 per share, but the company is said to have made extra demands as part of the discount that Musk's lawyers wouldn't agree to.

After Twitter sued Musk in response to his pulling out of the deal, the billionaire was critical of the company, accusing it of lying about how many fake accounts populate the platform. He even challenged CEO Parag Agrawal to a public debate on the issue.

"I'm excited about the Twitter situation, because obviously I know their product incredibly well," he said. "And I think it's an asset that has sort of languished for a long time but has incredible potential."

Soon after it was revealed that the Twitter acquisition was back on, Musk asked the presiding judge in the legal proceedings between the two, Kathaleen McCormick, to pause all litigation as he looked to secure funding for the deal. McCormick agreed to the request. Twitter's lawyers weren't happy about it, but the judge did add a caveat: Both sides have until 5 pm on October 28 to complete the transaction, or the trial will commence sometime next month. That deadline is just eight days away.

But Musk's comments suggest the deal is getting ever closer to completion. Another possible sign that the saga might be drawing to a close came on Monday when Twitter froze its staff's ability to access or trade shares on its Equity Award Center. A notice on employees' FAQs read: "This freeze allows Schwab to perform final reconciliation of employee accounts prior to close of the acquisition."

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Vulcanproject

Posts: 1,594   +2,951
My problem with Twitter is that it is inherently a shallow platform. Character limits ensure brevity but destroy accuracy. Musk himself uses the platform for self promotion, commenting on complex topics with no genuine nuance or depth. Drawing up a (likely intentional) firestorm behind him.

If you want to go on Twitter to tell the world you are pregnant or fell over your dog with a comedy picture attached then go right ahead. If you want public figures and world leaders to give you the bad news nuclear war could be about to break out sad face emoticon, I would rather not be involved in that 'discussion.' It is not a platform to be the centre focus of really important social or political problems.
 

Bobbydpue

Posts: 404   +267
He's a pretty smart clown then.
But is he? He came to Twitter with an offer to buy them at well over their stock price. Both sides agreed to the purchase and Elon decided to change him mind about the deal when it was already a done deal, then he craps on the company reducing their stock value then is forced to go through with the purchase over the threat of a court case will be lose. Elon has had some success and has made very clever business decisions, but the guy is also full of dumb ideas, too, and this is one of them.
 

Bobbydpue

Posts: 404   +267
My problem with Twitter is that it is inherently a shallow platform. Character limits ensure brevity but destroy accuracy. Musk himself uses the platform for self promotion, commenting on complex topics with no genuine nuance or depth. Drawing up a (likely intentional) firestorm behind him.

If you want to go on Twitter to tell the world you are pregnant or fell over your dog with a comedy picture attached then go right ahead. If you want public figures and world leaders to give you the bad news nuclear war could be about to break out sad face emoticon, I would rather not be involved in that 'discussion.' It is not a platform to be the centre focus of really important social or political problems.
No one said Twitter is a focal point for anything important. The character limitations is what made Twitter unique without it Twitter is nearly the same platform as Facebook.
 

Vulcanproject

Posts: 1,594   +2,951
No one said Twitter is a focal point for anything important. The character limitations is what made Twitter unique without it Twitter is nearly the same platform as Facebook.
When one of the world's richest men with a very high profile uses the platform to outline a plan within Twitter's character limit how to end an ongoing war involving a nuclear power and other highly complex factors, then you should probably question the seriousness and usefulness of such expressions.

When the president of the world's foremost power casually throws not very carefully considered statements onto the platform that millions read I would also further question your belief that nothing said on Twitter is an important focal point in many circumstances.

My position was clear- nothing said there SHOULD be important comments on complex situations by influential and powerful people regards global affairs. Unfortunately that is not what we have seen the past few years. Twitter diplomacy is incredibly stupid at best and outright dangerous at worst.

That is the problem.
 

captaincranky

Posts: 19,287   +8,433
It should be obvious that Musk is trying to put a positive spin on his massive financial blunder_full stop. You know, the one he couldn't wriggle out of.