Social Media

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.

Culture wars: Musk’s Twitter punt, French election

7 Apr 2022

Outspoken political and business leaders are making big moves. In this Viewsroom podcast, Breakingviews columnists discuss why Twitter may have reaped the benefits from Elon Musk’s investment and how French President Emmanuel Macron needs to work hard to win over voters.

Musk fully cashes in on Twitter hype

5 Apr 2022

Tesla’s CEO has joined the $41 bln social media firm’s board after buying a 9% stake. He has a solid tech track record, and with 80 mln followers, it’s an insurance policy he won’t start his own platform. But Twitter’s value is up $10 bln. His presence doesn’t validate that jump.

Musk turns SEC into super-Twitter

4 Apr 2022

The Tesla boss revealed that he is now the social media group's top shareholder. Some 80 mln people track his tweets, which have got him into trouble with the U.S. regulator. When it comes to opinions about Twitter itself, though, the SEC's disclosure platform may have an edge.

GIF inventor made few rich, but billions happy

24 Mar 2022

Steve Wilhite, who died aged 74, created a way for images to be easily shared and used in websites. The patents lapsed, and his employer CompuServe slipped into obscurity, yet GIFs remain ubiquitous – marking their inventor as one of tech’s great accidental philanthropists.

EU’s faster, harder stick will whack U.S. big tech

22 Mar 2022

Existing antitrust law is too slow to prevent digital monopolies and too weak to create competition. New European rules, with a focus on prevention, will remedy that. The market is big enough and potential penalties so damaging that Apple and others need to take notice.

Mark Zuckerberg’s metaverse is a virtual money pit

10 Mar 2022

Facebook parent Meta Platforms’ valuation is half its peak, and the company is worth a third less than if it were benchmarked against ad-machine Alphabet. One explanation is that investors think Zuckerberg’s metaverse project is worth less than nothing. It’s not so far-fetched.

Ukraine puts power of U.S. tech firms on new level

28 Feb 2022

Facebook is fighting Russian hackers while SpaceX is providing internet access. Such communications services are critical in a war. It’s easy for the CEOs concerned to take one side with little risk to revenue from the other. Next time, the incentives could be more complicated.