Musk’s entry marks a good exit for Twitter shareholders, but profitability will remain elusive
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Elon Musk is displayed on a computer screen and the logo of twitter on a mobile phone in Ankara, Turkey on October 06, 2022.
Synopsis
At a time when tech stocks are facing a tough phase, Musk offered a price that Twitter shareholders couldn’t refuse. For a company that hasn’t seen profitability for eight out of the last 10 years, it will be difficult to make profits even if all its verified users agree to pay USD8 per month.
Elon Musk has paid USD44 billion for Twitter, the world’s town square. Can Musk make Twitter profitable? Does the deal make any business sense? And what does it mean for the shareholders? Let’s get to the last question first. While there is a philosophical discussion going on about what this means for Twitter users, this is the best deal that shareholders could get. Here’s why. The company has not delivered profits for eight out of the last 10
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