Elon Musk and The Twitter Deal

What is Elon Up To With Twitter Now?


If you do a quick back-of-a-napkin math rule that 1 sub is worth $1 to the business each year and apply it to the initial Twitter offer…

But add in the new factors that come to light:

330,000,000 users are probably closer to 275,000,000 when factoring for bots, spam, and old dormant accounts.

Take the $44B Elon offered divided by estimated 275,000,000 active users.

At that price, he would have paid about $160 per user.

According to Statista.com Twitter revenues have exceeded $1B each quarter since Q4 2022, showing some instability in growth, while remaining on a hockey stick uptrend. It’s clear in the chart Covid times were spiking and beneficial to Twitter.

But where does that leave Twitter now?

As Elon backs off on the initial $44B Twitter acquisition deal it opens up for the first time a clear opportunity for a break in the hockey stick uptrend. It brings into question Musk himself “is $44B the actual value?” Or is Musk overpaying?

This same hesitancy begins to influence the market. As Musk has done indirectly in the past when instructing “get’em boys” to his Twitter fans in the GameStop Wall Street Bets scenario…

This same hesitancy Musk is showing now for closing the Twitter deal also reflects itself in the market plateau of the Twitter stock price.

Currently moving on a mostly downward or stagnant trajectory since October 2021. Falling from $63.68 per share to $33.39 in early March 2022.

From March 2022, so now you can see the stock price experienced a bump as Musk then announced on April 21, 2022, that he would buy Twitter. 

Only to announce later on May 13… Musk says in a tweet that the Twitter deal is “temporarily on hold,” citing concern over an underreported amount of bot and spam accounts on the platform.

Looking at the Twitter stock price 6-month chart you can see it came off a short plateau and proceeded to dive hard just days before the announcement, reaching a newly established lower trading range.

Who knows what could happen next?

Comment your thoughts below 👇 

Do you think Musk will close the deal?

Do you think this is a great way for Musk to get a discount?

Do you think that if Elon doesn’t close the deal this could be detrimental to Twitter and the hockey stick growth patterns it was riding?

Or, will the company continue to make $1B each quarter and remain a top 10 trafficked website/app platform people consistently flock to for news and information on the latest that Elon Musk is up to?

According to research

  • As this hold on the Musk Twitter deal is happening, Tesla just announced another stock split for 3-to-1 that will take place on August 25th

  • After having already done a 5-to-1 stock split on Tesla stock recently back in August 2020, and climbing the stock back up to over $925 per share

  • Stock Traders are seeing Tesla stock swing back down about 55 points from the moment Tesla announced the new 3-to-1 split

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– Elon Musk

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