Now that Twitter is private the stock is going to be a lot less volatile. Work hard. Acquire users. Enter new markets. Valuation improves (once or twice a year). Cash out during a purchase offer.
If I were Elon, I'd be drowning the remaining loyal employees with RSUs.
Twitter was already losing hundreds of millions per year. They now have another $1.2-1.5 billion per year due in loan payments. Interest rates are rising. Advertising revenue is going down due to the recession and companies cutting Twitter spend due to the toxicity. And his big new subscription idea is already on hold due to impersonation and scams. If employees can see a way out of this, they must really be believers.
The fact is it's a team. Twitter has more than enough runway to get through this transition and turn things around. It's up to the team to execute effectively.
As for runway – that's public information as well. Twitter had $6B in cash and securities as of the last financial statement release. That has likely gone down a fair amount due to acquisition-related costs as well as severance payments. Keeping up with the ~$2B/yr burn rate, unless Twitter can turn things around fast (or get another cash infusion), it has about 2-3 years left in the tank.
They…don’t. Their last quarterly numbers had a hair over $1B in advertising revenue, and that was both a quarterly and year-over-year increase, so they weren’t making more than $4B/year from advertising before Musk took over. Their advance sales were bad for next year because of the potential of the Musk takeover, and big accounts have backed out, and big agencies publicly advised clients to back out of the platform, based on what has gone on since the takeover.
It wasn't. He structured the acquisition such that Twitter took on substantial new debt rather than providing the funds himself.
Was it a good move? Honestly I'm not savvy's enough about this kind of thing to say, but it definitely wasn't the only move.
A substantial part of Twitter's net loss is because he chose to saddle it with new debt.
That's a peculiar use of the word.
There's no doubt, executed correctly, Twitter could be a $200 billion company or more. It's really an opportunity for the employees to make that a reality. Elon (like his other companies) is going to put the engineers in control.
Please, consider investing in some real estate. I have a fantastic property in Brooklyn and it is a deal that you would not believe!
Or a less sarcastic response... You mean he'll put them in charge after firing them? Twitter literally barely works right now. I'm not sure how you came to the conclusions you have, but they are unreasonable on their face.
In what? I'm not sure I'd value private RSUs in current-Twitter _particularly_ highly, myself.