Has there ever been a dumber business deal than Musk’s botched and over-priced acquisition of Twitter? Musk massively over-paid for Twitter, and his approach to the deal was so amateurish that he locked himself in early. Frankly, had he been a mid-ranking investment manager, you’d have fired him for such a cock-up.
Thoughtful analysis of Musk’s latest folly here:
“It looked like Musk had put himself into a commercial situation he could not get out … Few business people, following advice, would have allowed this to happen … the utter lack in this transaction of any visible risk-based approach by Musk is remarkable.”
Twitter is just another technologically-unremarkable social media platform. From Friendster to Bebo to MySpace, the history of the internet is littered with their carcasses. There is nothing intrinsically different or sustainable about Twitter – it’s always going to be subject to the whims of generational fashion, and there is no technological barrier to entry for any competitor. Only an idiot would have blown $44 billion on a piece of crap like Twitter.
So, having lunged into a binding commitment on the seeming basis of no due diligence to speak of, what’s Musk’s big plan? Mostly, it’s to lash out and blame everybody else and inflict economic harm on other people to cover up his own bungling.
First, he states publicly that it would be better if Twitter allowed racist assholes and dumb conspiracy theorists (such as Trump) back onto Twitter. (Musk was working in the office when he came up with this brainwave.)
But then major companies (Audi, General Motors, Pfizer, United Airlines, etc) – who are less than enthused by having their products associated with racist assholes and dumb conspiracy theorists – start to cancel their Twitter advertising deals.
This is a direct result of Musk’s stupid strategy (the one he dreamt up in his office).
Next, Musk rages at said companies for being “influenced by activists”.
Blinded by his own ego, and too fragile to own his own mistake, Musk is unable to accept that companies merely respond to what their own customers are telling them. Unlike Musk, they make decisions for financial reasons.
Next, Musk has another brainwave – get everyone back into the office full-time.
That’ll sort it out. We need that face-to-t0-face interaction, for un-specified reasons.
Next, desperate to recoup some costs from his over-priced and un-researched purchase, Musk has another brainwave – let’s fire half the staff!
Oh, and, despite what Musk said about everything needing to be done face-to-face at all times, curiously, firing thousands of people can be done by e-mail. No face-to-face interaction needed for that.
Next, having hit a few speed-bumps with his stupid “back to the office” plan (e.g., Irish employees, who had moved out of Dublin due to Dublin’s exorbitant rents and general unavailability of housing, pointed out that returning to the office would involve them doing a 10-hour daily commute), Musk then invited everyone to sign up to work unlimited hours for no extra pay. This, according to Musk, is what you need to do – work around the clock, in a business you have no personal stake in, for no extra pay and dedicate your entire time on this planet to the good of your employer.
This stricture, from a man who then received a $55 billion dollar payback for working part time at Tesla.
So, it’s OK for Musk to get super-normal rewards for working part-time, but you suckers should work around the clock for nothing more.
The hubris and hypocrisy of this increasingly-unhinged guy beats the band.
And let’s not forget that, in the travesty that passes for his “personal” life, Musk is a failure – he has a string of failed relationships (divorced three times already); and he has named one of his childen X Æ A-12, thereby all but ensuring that the unfortunate child will grow up to despise him.
Years ago, I admit I thought about buying a Tesla.
But Audi makes wonderful EVs folks. So does BMW. So does Lucid Air. So does Porsche. So does Hyundai. So does VW.
And it’s to one of those that my money will be going in future. I’d rather walk than buy anything that would associate me with a cissy-bully twerp like Elon Musk.
Musk’s toxic personal brand is now the biggest reputation liability his business interests have to deal with, and he’s too full of it to see that.