Courtesy of Howard Lindzon
I have been having a few laughs on Twitter since Elon became ‘Chief Twit’.
I have been ‘Chief Twit’ at Stocktwits for 14 years so I hear his joy and pain.
I really have no idea if Elon can make this more valuable than the $44 billion he paid, but I am very confident if he makes it about free speech the value will continue to degrade.
He takes over a company whose stock was up just 20 percent over the NINE years since it’s IPO. The management and board are obviously to blame, but the real problem is the business model. The advertising business was a complete fail for Twitter and its shareholders.
There are two areas of Twitter that matter…sports and finance. Both have markets around them – gambling and investing – that would drive enough revenue and margins to create a business for Twitter wirth $50 billion plus.
Not only will I not pay $20-$200 to be verified, I won’t pay Twitter for anything that does not drive value for me in sports and finance. I can guarantee if Elon rips up all the data contracts and or waits until they expire and slows down the stream by 60 seconds, billions in data revenue from Bloomberg, Goldman, the financial industry as a whole and sports media etc would flow in the door. No ads, no user experience interruptions and thousands of employee reductions from the ad business would take care of the margins and efficiency.
My friend Ramp Capital long ago write why Twitter should pay us.
This morning Elon has changed his Twitter handle to ‘Twitter Complaint Hotline Operator’. I have been there Elon.
As for Elon getting any source of religion…Matt Levine doubts it. Great read.