Richest man owns Twitter, and the second richest Washington Post — What can we expect?

As I write this, twitter has blown up by what could be the abomination of social media — definitely something unexpected happened, and it’s taking some slightly longer to adjust to the fact that billionaires who could have made an impact in the philanthropic areas chose to buy a company for $44 billion just ’cause they could.

As I’m scrolling through my Twitter feed, hashtags of death are trending.

So let’s talk about the transaction…

A month or so ago, Musk got this wonderful idea that he liked Twitter and he must own it. So he made an offer, however the shareholders introduced a poison pill strategy — where any one who’s owning a certain percentage of the shares couldn’t buy any more shares of the company — in order to avoid a hostile takeover, or as you can say shop around for better offers.

While they were in the market unsuccessfully looking for offers — Musk comes aboard with his financing solidified via an SEC filing — including $21 billion of his own equity and $25.5 billion of funding via Morgan Stanley.

Now Twitter put themselves in this red ocean, they had to take the offer seriously or they could be sued for not putting the shareholders best interest ahead of their opinions of Musk.

As we all now know Musk owns Twitter and paid a whooping $44 billion for it.

What’s going to happen to the management?

Trevor Noah talks about Twitter’s management in his segment — that Jack Dorsey didn’t “own” Twitter, he answered to a board, Musk doesn’t need to do that — the company is his, to do with it what he pleases. That being said, let’s discuss the big question about the CEO, board and the employees.

Does Musk really want to pay $42 million as severance to the CEO after the big purchase he just made? To add to Musk’s woes of not being a fan of the management, the debt structure he has entered into, if Tesla’s share price goes below $520, he would be in serious trouble. It’s already trending at $860. So I bet there are no layoffs coming for Twitter employees, however there might be senior executives who just leave their positions based on their personal preferences.

The existing board probably wouldn’t stay intact after the poison pill grave they dug for themselves, and pretty sure once the lock in period for the CEO is over, there’ll be a new Twitter leader in town.

Why are these billionaires entering the world of social media?

Now…Twitter might not be as successful as the other social media outlets, yet it can sway opinions. Twitter is a pillar of every news outlet, politician, celebrity and activist. It is a cultural zeitgeist.

Mark Zuckerberg already owns Facebook, Jeff Bezos bought Washington Post and Elon Musk just bought Twitter. The billionaire boys must be upto something.

My guess is to have a way to manage their public reputation, potentially enter the world of politics, or create political allies because of their sway in the media.

What can we expect next?

An edit button, that’s certain!

On a more controversial note, unbanning of Donald Trump! Even though Trump has mentioned he would like to stick to Truth Social, let’s see what’s next.

Elon musk can slowly promote himself and his multiple companies’ interest and push his agendas forward. With privatisation, there’s a lot of benefits for him and a lot of “free speech” which I don’t think is necessary considering some of the celebrities tweets including Elon himself.

His recent vile post about comparing Bill Gates to a pregnant man emoji, just goes on to display that Musk needs some supervision. That being said Uncle Sam does step in when it comes to lies being spread.

While I think Elon Musk is a genius, he can be impulsive and crass.

Being a little more optimistic and comparing the Washington Post positive turnaround after the Jeff Bezos acquisition, there might be some hope. Washington Post, still posts critiquing articles about Amazon, the finances of the company have improved and the trajectory looks decent.

Musk is a man of technology, we already see NFTs floating on Twitter, and with metaverse trending, we might see some innovation in the otherwise not so innovative platform.

As an investor you get to enjoy your $54.20 return per share — that’s easy money right there!

That being said, there’s still concern about the platform, with Elon being an unpredictable man. But who knows there is still hope for Twitter 2.0. Rest assured we are in for a few surprises in the social media world in the future.