Twitter was poorly managed. It would have been a $100B company in 2020-21 if it had shown any semblance of consistent profitability.
The opportunity here is to:
- Take the company private
- Cut costs by pruning staff and reducing bloat
- Get high-engagement accounts back, which, in turn, will bring back advertisers (perhaps sweeten the deal by promising something with your other ventures)
- Eke out a few quarters of consistent profits
- Go public again, this time with $500M/quarter of profits
- Enjoy the standard "Musk-effect" 40x PE multiple and slow keep cashing out
Hard to cut costs when you've just saddled the company with billions of dollars in new debt. Don't forget El Musk-o is getting sued by Tesla shareholders over his bloated compensation.
Get high-engagement accounts back
Advertisers didn't leave en masse because "high-engagement accounts" left, they left because the "high-engagement accounts" came back. From the looks of it "absolute" free speech doesn't include Alex Jones, so who knows what other "high engagement" accounts will be left out in the cold. Doubling down on "absolute" free speech just means you're going to have a sea of ads about pillows, dick pills, and reverse mortgages.
Twitter was poorly managed. It would have been a $100B company in 2020-21 if it had shown any semblance of consistent profitability.
The opportunity here is to:
- Take the company private
- Cut costs by pruning staff and reducing bloat
- Get high-engagement accounts back, which, in turn, will bring back advertisers (perhaps sweeten the deal by promising something with your other ventures)
- Eke out a few quarters of consistent profits
- Go public again, this time with $500M/quarter of profits
- Enjoy the standard "Musk-effect" 40x PE multiple and slow keep cashing out