Elon Musk's Story After Acquiring Twitter

Elon Musk's Story After Acquiring Twitter

The business of Twitter (now X), which Elon Musk acquired in October 2022, is in a difficult situation to rebound. It is a completely different fact from what some say that Twitter, which had previously been lax due to its management efficiency, has turned out to be a fast and agile organization.

In fact, I wonder why X is making a profit now, and why it is introduced here and there as an example of how management efficiency work has shone since Elon Musk. X has not increased as much as Elon Musk says, and continues to suffer losses due to the interest on the money he spent pulling to acquire Twitter.

This phenomenon continues even after more than 75% of the employees are suddenly fired. Companies that have paid a lot of money, especially those that have left, are still showing no signs of returning, and the results of the various products and subscriptions that have been released in droves are not significant.

You must look at the reality and judge management performance. X has been growing backward for nearly two years, and the number has deteriorated day by day. In 2023, overall sales flew by more than 25% compared to the previous year, and advertising sales in the largest market, the United States, fell by 53%. No one in the industry is talking about X making a profit.

What was it like before Elon Musk became the owner? It was a company that continued to grow with sales growth and profit. Despite much controversy, Twitter's position on social media was beyond meta or snap. But it's safe to say that the legacy has now disappeared in less than two years.

As he always insists loudly on X posting, X's situation is not really improving much. It's been a long time since it's been a normal company. Ahead of the U.S. presidential election in November this year, the plan is to attract traffic and political advertisements with political content, but this is only a short-term strategy.

Will X ever become a company that grows in the long term and runs its business again? The current state tells us that it will not be easy to do so. The use of Elon Musk in the business portfolio, such as xAI and Tesla's autonomous driving, also seems difficult (as has been said).

The assumption is useless, but without the acquisition of Twitter, Tesla shareholders would not have to go through the current situations, and would have received a much better evaluation of other businesses.

If you want to evaluate a person as a great visionary and manager, you have to continue to judge the results he produces. The "freedom of expression," which he said was the first reason for the Twitter acquisition, was not an area where he could build a business and persuade people.

I hope he becomes a great entrepreneur who has developed the technology that has helped him the most to overcome the climate crisis.

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Yesterday's coffee pot. There's something to hit and not to hit. I'm not trying to deny him other achievements he made. The Twitter acquisition was a decision where rational and rational judgment never worked, and capitalists overwhelmed by the capabilities and influences he showed handed him companies. And the consequences are disastrous.