Twitter board is dangling over hot water 10 May 2022 The social media company’s directors did not conduct an auction to seek rival offers to Elon Musk’s $44 bln bid, and some have overlapping interests. That leaves them open to accusations of conflicts of interest. Whether the deal goes ahead or not, the board looks exposed.
Musk coinvestor roster underwhelms multiple ways 5 May 2022 Placing money alongside the world’s richest man should be an easy pitch. But tech heavyweights backing his $44 bln Twitter bid with $7 bln still leave a hole, and checks from smaller investors suggest he was scraping the barrel. It indicates skepticism about Musk’s latest idea.
Elon Musk Twitter coinvestors will be rare birds 2 May 2022 The billionaire’s $44 bln bid for the social media group stretches his Tesla wealth. Lenders with claims on Twitter’s cash are handing him a quarter of the price. But managers of other people’s money, like buyout firms, will struggle to justify investing with the mercurial Musk.
Elon Musk can’t buy his other “censorship” foe 28 Apr 2022 The billionaire is set to buy Twitter, motivated by perceived restraints on free speech. But his legal quest to get the U.S. SEC off his back when it comes to vetting tweets about carmaker Tesla failed this week. The regulator won't roll over as easily as Twitter's board.
Musk has at least three Twitter problems to fix 28 Apr 2022 In the first quarter, the $37 bln network’s expenses rose twice as fast as revenue. Users were up 16%, but Twitter admitted it had mistakenly puffed those up in the past. Plus, still it hasn’t proven it can be regularly profitable. That all takes attention Musk may not have.
Elon Musk’s Twitter funds, Netflix with ads 28 Apr 2022 Tesla’s boss is close to clinching control of the social network, having secured financing from Wall Street. Breakingviews columnists discuss why the bet makes sense for banks in this Viewsroom podcast. Also, the streaming service’s subscriber pain may lead to bountiful change.
TikTok is eating Facebook from the inside 27 Apr 2022 Slowing revenue and barely-there user growth show Mark Zuckerberg’s social network is still losing ground to its video-app rival. The Russia-Ukraine war has turned TikTok into a news source too. Facebook owner Meta Platform’s best defense? Copy its rival as fast as it can.
Elon Musk probably won’t buy Twitter 27 Apr 2022 Sure, the Tesla boss will be on the hook for at least $1 bln if he walks away from the $44 bln deal. But shares in his electric-vehicle firm could rise by more than he loses. The risks to Musk’s China business, regulatory pushback, and Musk’s general flightiness further lengthen the odds.
Elon Musk’s Twitter deal sullies his climate cred 27 Apr 2022 The Tesla CEO’s master plan is to combat global warming, which he calls the “biggest threat” to humanity. Committing most of his available wealth to buying a social media company doesn’t much help the cause. It’s a $33 bln missed opportunity to reduce even more carbon emissions.
Elon Musk buys Tesla a pounding Chinese headache 26 Apr 2022 The world’s wealthiest man is buying Twitter for $44 bln in the name of free speech. Beijing will lean on him to un-ban its troll army, then push him to comply with its extra-territorial sedition law. The profitable carmaker’s key Shanghai outfit risks being a pawn in the fight.
Twitter’s board hastily grabs $44 bln bird in hand 25 Apr 2022 Only 10 days after the social media firm bought time to seek other options with a poison pill, its directors have accepted Tesla billionaire Elon Musk's offer at its original value. That suggests board weakness, financial vulnerability, a lack of other bidders, or all three.
What is Morgan Stanley smoking in Twitter LBO? 25 Apr 2022 The bank is leading a $13 bln debt package for Elon Musk’s buyout and lending $12.5 bln against his Tesla stock. Interest will eat up the social network’s cash flow and Musk may undermine its revenue. A good relationship with the world’s richest man may justify the risk, though.
Musk wealth pours in as fast as Twitter can use it 22 Apr 2022 The Tesla CEO may need to find $33 bln more cash if he buys the social media company. That could require him to sell most of his shares in the electric-car maker that aren’t pledged against loans. But with more vast stock awards coming his way, it’s less risky than it looks.
Musk Twitter bid becomes less virtual, more risky 21 Apr 2022 The Tesla CEO says he’ll put up almost half the $46.5 bln needed to buy the social network and borrow $13 bln against his stock in the carmaker. Banks will lend $13 bln. If all goes well, he makes a private equity-style return. Twitter’s poor cash flow means lots could go wrong.
Twitter’s scarce suitors, Didi’s New York exit 21 Apr 2022 As Elon Musk dangles a $41 billion offer, Breakingviews columnists discuss whether anybody will end up buying the social network in this Viewsroom podcast. Plus, the Chinese ride-hailing firm cancels its U.S. listing less than a year after arriving, leaving shareholders stranded.
Musk’s Twitter tilt comes at bad time for Tesla 20 Apr 2022 The billionaire’s quixotic offer for the social-media group will be too big a distraction from running the $1 trln electric-car maker. Tesla faces disruptions from rising costs, supply-chain woes as well as more competition for scarce resources. That demands Musk’s full focus.
Twitter’s habitat lacks natural predators 18 Apr 2022 Elon Musk’s $41 bln bid has put the social network in play, but closing a deal is harder. The Tesla boss may struggle to recruit partners, while meager earnings make it a stretch for private equity. Tech giants face antitrust concerns and toxic content will put off media suitors.
Twitter can afford to refuse Musk’s $41 bln bid 14 Apr 2022 The world’s richest man says he’ll pay $54.20 a share for the social network, but may sell his 9% stake if the “best and final” but non-binding offer is rejected. It’s less than a week since Musk walked from a deal to join the board. Twitter has multiple reasons to demand more.
Flighty Musk exposes Twitter’s flaky governance 11 Apr 2022 The world’s richest man bailed on joining the social media firm’s board, days after agreeing to become a director. His run-ins with regulators and inflammatory tweets were well known. Appointing Musk the day he unveiled a 9% stake reflects how poorly the $37 bln company is run.
Telegram’s Russia performance is a one-man show 7 Apr 2022 Pavel Durov’s messaging app has resisted President Vladimir Putin’s edicts and survived them. The app’s popularity has surged, setting it up to double its $30 bln valuation. Yet for skeptics of transparency at Twitter or WhatsApp, Telegram arguably presents even starker risks.