Elon Musk now owns 9.2% of twitter...update.. will soon be the sole owner as Board of Directors accepts his purchase offer

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IronWing

No Lifer
Jul 20, 2001
70,268
29,013
136

Greenman

Lifer
Oct 15, 1999
20,975
5,593
136
He'll be paying interest on 3.46 billion unless he decides to pay it off. Given inflation and interest on older debt,he's probably better off paying the absolute minimum.

I guess the bigger question is how much he'll borrow to buy twitter vs cashing out his stock. His debt load could be quite substantial.
Twitter gross profit for the twelve months ending June 30, 2022 was $3.181Billion. He'll be able to afford the payments.
A lot depends on how many people leave. My wild ass guess is it won't be enough to matter.
I don't use the service, and think the world would be better off without it, but I find the overall story interesting.
 
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IronWing

No Lifer
Jul 20, 2001
70,268
29,013
136
Twitter gross profit for the twelve months ending June 30, 2022 was $3.181Billion. He'll be able to afford the payments.
A lot depends on how many people leave. My wild ass guess is it won't be enough to matter.
I don't use the service, and think the world would be better off without it, but I find the overall story interesting.
If Musk follows through on his stated plan for twitter, I expect revenues to plunge as users walk away.
 
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MrSquished

Lifer
Jan 14, 2013
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If Musk follows through on his stated plan for twitter, I expect revenues to plunge as users walk away.
This is the most likely outcome and it will be great if it happens. I will turn off my account the day he takes over.

As we see by parlor and true social, It's just a bunch of mid-stage Nazis circle jerking around it doesn't do well.

That's going to be the majority of users if Elon takes over and all the non-Nazis leave.
 

K1052

Elite Member
Aug 21, 2003
48,246
37,672
136
Twitter gross profit for the twelve months ending June 30, 2022 was $3.181Billion. He'll be able to afford the payments.
A lot depends on how many people leave. My wild ass guess is it won't be enough to matter.
I don't use the service, and think the world would be better off without it, but I find the overall story interesting.

lol
 

K1052

Elite Member
Aug 21, 2003
48,246
37,672
136
If Musk follows through on his stated plan for twitter, I expect revenues to plunge as users walk away.

This is basically how I see it going down assuming he doesn’t fire too many engineers first and the see service death spiral due outages and other problems.
 

Pens1566

Lifer
Oct 11, 2005
12,321
9,175
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This is the most likely outcome and it will be great if it happens. I will turn off my account the day he takes over.

As we see by parlor and true social, It's just a bunch of mid-stage Nazis circle jerking around it doesn't do well.

That's going to be the majority of users if Elon takes over and all the non-Nazis leave.

And staff cuts/attrition, yeah it's a recipe for failure. Be fun to watch.
 

manly

Lifer
Jan 25, 2000
11,902
2,848
136
And staff cuts/attrition, yeah it's a recipe for failure. Be fun to watch.
As pointed out earlier in this thread, staff jumping ship has been occurring since summertime when Elon decided to harm the very business he's contractually obligated to purchase. SF "liberal" types just don't want to work for this kind of guy.

Fear not though. As Musk transferred Tesla white collar workers into the service dept. earlier this year, he could always figure out some way of loaning Tesla engineers to TWTR to keep the lights on. :tearsofjoy:

As far as the business is concerned, obviously there are "head winds" at a macro level, and even more so for big tech & digital ads in particular. Even beside that, if you look at Twitter's financials, they have not been strong at net profit or FCF since the pandemic. It's obviously a highly popular and useful (news publishing) service, but it's never had a strong business model behind it. IMO a likely end game is Musk fucks around for a while as chairman and sells the company at a large loss in a few years.

Greenman thinking gross profit is something like net profit tells you all you need to know about his analysis.
 
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Greenman

Lifer
Oct 15, 1999
20,975
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As pointed out earlier in this thread, staff jumping ship has been occurring since summertime when Elon decided to harm the very business he's contractually obligated to purchase. SF "liberal" types just don't want to work for this kind of guy.

Fear not though. As Musk transferred Tesla white collar workers into the service dept. earlier this year, he could always figure out some way of loaning Tesla engineers to TWTR to keep the lights on. :tearsofjoy:

As far as the business is concerned, obviously there are "head winds" at a macro level, and even more so for big tech & digital ads in particular. Even beside that, if you look at Twitter's financials, they have not been strong at net profit or FCF since the pandemic. It's obviously a highly popular and useful (news publishing) service, but it's never had a strong business model behind it. IMO a likely end game is Musk fucks around for a while as chairman and sells the company at a large loss in a few years.

Greenman thinking gross profit is something like net profit tells you all you need to know about his analysis.
I don't recall equating the two.
You should have looked at the link I posted before saying something foolish.
 

manly

Lifer
Jan 25, 2000
11,902
2,848
136
I don't recall equating the two.
You should have looked at the link I posted before saying something foolish.
The fact that you think he can pay down debt from GROSS profit tells us all we need to know about your ANALysis. The reality is that they've been cash flow negative for two years when other big tech companies have been posting record profits.

So thank you for showing us who the fool is.
 
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MrSquished

Lifer
Jan 14, 2013
23,156
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136
The fact that you think he can pay down debt from GROSS profit tells us all we need to know about your ANALysis. The reality is that they've been cash flow negative for two years when other big tech companies have been posting record profits.

So thank you for showing us who the fool is.

I think at this point the guy takes pride in being the most disingenuous and willfully ignorant fool in order to back up his own very very real biases. As you noted Twitter net income in the last few years has always been negative. Last time their net income was positive was 2019. Post this to that jackwagon so he can see it.


Twitter annual/quarterly net income history and growth rate from 2011 to 2022. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for.
  • Twitter net income for the quarter ending June 30, 2022 was $-0.270B, a 511.29% decline year-over-year.
  • Twitter net income for the twelve months ending June 30, 2022 was $-0.112B, a 129.08% decline year-over-year.
  • Twitter annual net income for 2021 was $-0.221B, a 80.5% decline from 2020.
  • Twitter annual net income for 2020 was $-1.136B, a 177.48% decline from 2019.
 

cytg111

Lifer
Mar 17, 2008
24,030
13,539
136
Who knows, he might be able to pull something off ... It will be interesting to watch for sure.

But if I was Bezos I'd fuck with Elon in this space to the max... you know, to keep is eye off the other ball.
 

Pens1566

Lifer
Oct 11, 2005
12,321
9,175
136
Who knows, he might be able to pull something off ... It will be interesting to watch for sure.

But if I was Bezos I'd fuck with Elon in this space to the max... you know, to keep is eye off the other ball.

Bezos has better things to focus on, like Amazon actually being profitable for one. Today's earnings news aside ...
 

manly

Lifer
Jan 25, 2000
11,902
2,848
136
Bezos has better things to focus on, like Amazon actually being profitable for one. Today's earnings news aside ...
Bezos isn't running Amazon any more. Seems like all he cares about nowadays are his GF and rocket ships, but I don't follow him closely.
 

Pens1566

Lifer
Oct 11, 2005
12,321
9,175
136
Bezos isn't running Amazon any more. Seems like all he cares about nowadays are his GF and rocket ships, but I don't follow him closely.

He's still on the board, and I'm sure he's still making some decisions. It's not like he isn't exercising the power of his billions in value.
 

Greenman

Lifer
Oct 15, 1999
20,975
5,593
136
The fact that you think he can pay down debt from GROSS profit tells us all we need to know about your ANALysis. The reality is that they've been cash flow negative for two years when other big tech companies have been posting record profits.

So thank you for showing us who the fool is.
And that was in the link I posted as well.