Social Media

Elliott’s Pinterest vision board has Twitter pins

15 Jul 2022

The activist has a 9% stake in the $13 bln company after investing in its rival in March 2020, then stepping back a year later. Twitter’s returns while Elliott was active outperformed competitors. A similar outcome, including a sale, is possible but without the Elon Musk circus.

Twitter may be target for non-Musk deal

12 Jul 2022

The arrangement that the social media firm struck with Tesla’s boss for $54.20 a share was just too expensive – and with the wrong person. Based on its bankers’ own approach, the stock is worth closer to $32, and it’s near that price. Other private buyers might be interested.

Twitter shakes Musk down with Delaware muscle

11 Jul 2022

The social network has hired big legal guns to work through a case that would force Tesla’s boss to buy the firm. But Musk has inflicted damage since he offered $44 bln to buy the firm – then regret the deal. A lawsuit is the best way to induce him to pay more to back out.

Capital Calls: SoftBank Arm-twisting

22 Jun 2022

Concise views on global finance: The UK government may be eyeing desperate measures to keep SoftBank-owned chip group Arm's IPO in London.

ByteDance schools old order in new online moves

21 Jun 2022

E-commerce sales growth is slowing at big players like Alibaba and JD.com. TikTok’s parent, though, is benefitting from consumers spending more on entertainment and education. The meteoric rise of an online English-teaching venture hosted by its Douyin app is a case in point.

Facebook sans Sandberg is more vision than company

1 Jun 2022

While the social network had problems under its departing COO, it at least had a business model and a top-tier executive who could sell it to investors. Amid slowing ad sales and co-founder Mark Zuckerberg’s pivot to the metaverse, Sheryl Sandberg’s exit comes at a poor time.

Big Tech braces for bipartisan midterm punches

1 Jun 2022

Facebook and peers got a pass from the U.S. Supreme Court over a Texas social media law. But if Republicans win Congress in November, they will be deluged with hearings and subpoenas. Democratic critics already lead industry watchdogs. Strife comes from both sides of the aisle.

Snap! Elon Musk has another Twitter excuse

24 May 2022

The disappearing message app abruptly slashed its quarterly profit forecast, sending shares spiraling nearly 40%. That’s an ominous sign for Twitter, which like Snap, relies on brand advertisers. It also gives the Tesla boss another reason to bail on buying the social platform.

Musk’s get-out-of-Twitter card is worth $5 bln

20 May 2022

Their $44 bln deal looks shaky but both parties risk a protracted fight if they go to court. That would distract both Tesla and Twitter when neither company needs it. Instead, Elon Musk can free himself by paying a break fee plus some. And the social network could use the cash.

Deal odds in the face of market pain

19 May 2022

Market pain is changing the math for arbitrageurs, as targets' shares may drop further if mergers fail. A Breakingviews calculator shows the odds of a deal going through. Run the numbers here.

Market rout throws off math for open deals

18 May 2022

Unlike Twitter, whose shares dived on Elon Musk’s waning enthusiasm for his $44 bln offer, other stocks pending a deal are down on little news. Market pain changes the math for arbitrageurs as target shares may drop further if mergers fail. A Breakingviews calculator shows how.

Tencent gives China bulls little to run with

18 May 2022

The $450 bln video-games giant said sales stalled in the first quarter, below expectations. Despite signs Beijing may rein in tech crackdowns, the government’s Covid-19 lockdowns are creating more uncertainty. Investors hoping to ride out the volatility will get no such reprieve.

Twitter brinkmanship favors Musk exit for a price

13 May 2022

The Tesla boss is worried about well-known erroneous user figures. The company appears to be preparing a defense if it were to stay independent. Both parties need to act like they want a deal, and Twitter needs it more. But Musk can probably convince Twitter to call off the ball.

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.