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What Elon Musk (51) deals with as an entrepreneur often turns into gold. Telsa’s electric cars turned the automobile industry upside down. With the aerospace company SpaceX, it makes rockets that outperform the government’s missile programs. However, his Twitter purchase last October had yet to catch fire. Quite the opposite: Its value is said to have dropped by two-thirds relative to its purchase price since Musk took over the text messaging service.
With a purchase price of $44 billion, that squirted almost $30 billion. This is the assessment of US financial services provider Fidelity, which has recently devalued Twitter accordingly. Musk holds almost 80 percent of the shares and, as explained, removed the group from the stock market after the acquisition.
The tech entrepreneur has repeatedly admitted that he paid too much for Twitter. Fidelity slashed the text messaging service’s score by 64 percent shortly after the acquisition.
Musk seeks money-making solutions
Musk has yet to find a patent recipe for sustainable monetization with Twitter. In fact, the adjustments he made to the text messaging service had the opposite effect. The world’s second-richest man has arranged for news coverage that many advertisers don’t like. Since then, Musk has faced multiple allegations that Twitter is no longer sufficiently consistent with hate messages. According to Musk, the group’s ad revenues were cut in half. Subscription fees are designed to increase revenue. But so far, not even one percent of users have chosen a Twitter subscription.
Musk must have thought of how difficult it would be to turn Twitter into a successful company. Before the takeover, he even tried to get out of the purchase agreement. However, he later faced a Twitter lawsuit in which various legal experts affirmed bad prospects. Musk eventually took over Twitter on agreed terms. (smt)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
