On Monday, Elon Musk bought Twitter for $ 44 billion. Musk, C.E.O. of Tesla, the world's richest man, plans to take over a private communications company, and says he wants Twitter to be more in line with the principles of free speech, which, in a statement, Musk calls "the foundation of democracy." (In a statement, he described Twitter as a "digital city forum where important issues for the future of humanity are discussed." It is also thought that there is little chance of preventing people from violating stadium policies, which in themselves may change.
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Talking about Musk and what the future holds for his new acquisition, I spoke on the phone to Matt Levine, a Bloomberg Opinion writer who has been reporting extensively and analyzing the issue over the past month in his newsletter. During our discussion, organized in length and clarity, we discussed how Musk used Twitter to further his business interests, how he views free speech, and why Twitter's influence has long exceeded its financial value.
Why do you think Elon Musk is buying Twitter?
I think it's because you have real political and social beliefs about how Twitter should be run, and you feel like it's not being run that way. I also think you find great pleasure and usefulness in writing tweeting and you want it improved so you can use it. His company’s value is enhanced by being the most anonymous person on Twitter, so he clearly sees a huge amount in tweeting, and probably wants to be the owner of that.
It is not immediately clear why Tesla is as highly regarded as he is. So how does it connect Tesla's importance to Elon Musk as a person and how he directs himself to the world, especially on Twitter?
Tesla is a company, a relatively small car company, that makes high-end electric cars, right? And Tesla’s stock market value, which makes Elon Musk the richest man in the world, comes from an extremely high hopes for Tesla’s future ability to make more cars and become a better player in making cars as cars become more electric. And, just as it were, some kind of future industry — he created tunnels that he thought would be the future of transportation. He sends rockets into space. And so the value of these companies in the market is largely based on what is expected of how much money they will make in the future, as opposed to the amount of money they have made in the past. And what’s to be expected is helped by having a loving, vocal founder who makes a lot of jokes online and who is kind of a science fiction character himself, and who presents himself as a science fiction character, and who attracts people who love that to make jokes.
Tesla is the most expensive company to run. It is not like a telecommunications company, where you rent space from other servers and type a specific code. You have to build big factories to build cars. And, historically, Tesla needed a lot of money to run it, and Tesla was able to sell millions of dollars to new shareholders, to some extent surpassing the normal functioning of Wall Street, and not finding large stock exchanges. with banks but, instead, going out to market and selling to shareholders who are some of Elon Musk's biggest followers. So his public persona helped him raise money to build a big company that makes real things, and keep that company's valuation very high because people love it and love him, and rely on his vision for the future because he is a man who has access to them in many other C.E.O.
None of this translates in any way directly to the idea that having Twitter will make that more important. At least it doesn't happen to me. It is not clear to me that, if he had bought Twitter, he would have been better able to deliver his message, or he would have been better able to tell the story in a positive way for Tesla and good in his economic interests. But it is not clear that it would not be so. And he's a really smart man. One way to tell this story is that Twitter does not make much money compared to Facebook and other social media companies. It is not such a large company in terms of market value. He may say, “Well, I really benefit from the direct approach to society.” Owning that direct access to the community — the ownership of the thing that makes such a huge amount of Elon Musk and Tesla — must be valued in some way, whether by increasing the value created by Tesla, or by finding a way to make money. the importance it creates for sports stars and celebrities as well as Donald Trump and many other people. You know, Donald Trump's tweets back while on Twitter can create a multi-billion dollar or multi-billion dollar market move, right? And Twitter did not make much money on that. It’s not clear how a company can do it, but if you’re sitting on something that can create that much value, of course, if you’re really smart you can pull a certain amount out of it.
About how you described him using Twitter with his business image and business interest, is sui generis, or do you see this more now?
I think it’s hard to imitate him, but I think people are like that, and I think the oldest example in the last five years or so has been the rise in meme shares: companies like AMC and GameStop have got very high market ratings and very high. of money through social media, thunderstorms, and game memes. Adam Aron is a C.E.O. of AMC, and is a graduate student at Harvard Business School, a young man who has worked in the regular business profession. And he really embraces meme-stock stuff, and he does a lot of weird stuff on social media because his followers on Reddit and Twitter really like that and it looks good in stock. And he is very proud that he is working for meme investors in stores now, and he will do things that appeal to them.
I think there has been a long-held view that, if you were a strong business person, you could only get into trouble on Twitter and have to write nonsense checked by lawyers. And I think people are realizing that Elon Musk has created a huge following in his companies by not focusing on Twitter. And I think there are characters, and I think we are kind of at the beginning of the game. There will be more characters. And that applies to politics. He’s an obvious partner, where people have seen that you can make a lot of political grass by having a poster.
Courtesy Grizler.com
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