They just practice the same ways of doing business as any other “billionaire”, but have both decided that notoriety is priority number one.
Someone please correct me if I am wrong, but is that saying that Musk seemingly used an 11x factor of the ~$3B in revenue to get the $33B number before subtracting the $13B in debt Twitter now has to arrive at his $20B valuation number, but that the industry average 4.5x factor of revenue is more appropriate to have been used? And if so, someone again please correct me if I am wrong, is that also saying the math really is closer to (~$3B x 4.5) - $13B = valuation, meaning he and his other investors paid $31B (Musk $23B alone) of their own fortunes ($44B purchase-$13B debt) for a company that five months later now could appropriately be valued at $500M? If so, he'd be overestimating its value by closer to 40x. Also, if so, HAHAHAHAHAHAHA.
How isn't the company essentially worthless at this point? Their biggest asset would be the IP/platform so surely they wouldn't have enough assets they could liquidate to cover their debts and equity
I'm not a business genius so someone please correct....is it considered good to pay 44b for a company and then (generously) value it at 20b approximately 6 months later?
Their biggest asset is, and has always been, its network effects (ie people use twitter because that’s where everyone already is) No one knows how much it’d cost to replicate that, but it’s a lot. $20b-ish doesn’t sound too crazy to me.
Well you see he foundlinged some other big companies without anybody’s help but his own, just like all the other people that have foundlinged their own small busynesses. In the minds of the small busyness foundligers they have basically the same level of busyness acumen, so all the moves he made was exactly what they would have done if they hostilely took over another foundligers small busyness as a play toy. Once you ignore things like purchase price and current valuation and just look at all the correct busyness 101 decisions made along the way then yes, this is actually good busyness.
I would think their biggest asset is their user data, but I'm not sure how valuable that is without the network.
Pretty much. That 11x multiple is a head scratcher given Twitter comps appear to be 4.5x. There is no rationale behind the figure he is using, and worse yet, when doing so his valuation is still coming in at half of what he paid just a short time ago. Why anyone continues to work for this guy is beyond me. Why anyone entrusts him with making decisions using their money or believing anything he says regarding financial valuations is an even bigger mystery.
I know Elon is tanking twitter's value with his terrible business acumen, but usually when some rich guy is getting laughed at because he claimed an asset is worth a fraction of what it previously was, I assume it's (at least partially) some sort of tax avoidance scam. I haven't bothered to read the latest articles, am I wrong here?
Without reading anything but headlines... This valuation was tied to stock awards to employees, so without knowing what the actual awards are, a higher valuation is potentially better for existing shareholders (Musk, Fidelity, Saudi Arabia), because the employees won't participate until the proceeds of a sale are above the valuation. So there is a reasonable likelihood that he wanted as high a valuation as possible and that was the highest he could defend. Usually it is real estate that people want to pretend is worth less for tax purposes.
What if I told you the blue check mark you paid for can now be hidden or that you’ll be inundated with neonazi propaganda now? That do anything for you toward an 11x multiple?
Plus he’s lost a boatload of money with Tesla stock plunging - because he chose to focus on (ruining) Twitter
My read is that Tesla was overvalued by the myth that's he has a 300 IQ. And now he's clearly demonstrated the be does not.
It’s really an amazing 20 or so year arc. has a competing company with PayPal, gets a sweet deal in a merger. Lots of money upon exit. Commandeers a cool new electric car company for the stars and gets all sorts of good PR. Rides that PR wave into starting other “cool” companies like SpaceX and Solar City. Truly a press darling, saving the world and making money along the way! Becomes the richest man in the world, abandons all positive PR he got for his past “achievements” and is now the dumbest and worst poster on the internet.
the number of people getting their accounts hacked increasing feels like it'll lead to people just leaving the platform vs paying for Blue
I'm surprised at how many people are unaware that you can still do two factor authentication. You just can't do it via text message anymore. Which is the less secure method of two factor authentication to begin with.