I predicted that Elon Musk would back out of the Twitter deal and he proved me right.
While my prediction speaks volumes of my thought-leadership to many, the prediction was in fact obvious to the informed. Before I explain why I knew Musk would cancel the deal, let’s reflect on Twitter as a company.
First, Twitter is discriminatory; against Conservatives.
Twitter violates the very tenets of what they claim to want to protect. Business can’t run long-term on conflicting ideologies. In short, Twitter is in conflict with itself.
Second, Twitter conflicts with common sense.
Despite “wokeism” that permeates society due to the insane ideology of Leftists, wokeism goes against common sense. And like with rebellious teens, eventually people must grow up. Admittedly, growing up takes longer with Leftists. Nevertheless, they eventually do mature.
If you’re paying attention, you will see that common sense has given wokeism a brutal takedown. A veritable body-slam.
Elon Musk has been joined by fellow mega-billionaire Jeff Bezos in fighting against wokeism. Bezos’ employees have unionized in pockets around the country. And that’s only the beginning of Amazon’s and Bezos’ problems.
In short order, the company will be embroiled in business-killing union conflicts. Perhaps this is why Bezos actually defied Biden recently. He criticized the administration for its comments asking oil and gas retailers to reduce pricing, accusing Biden of not knowing Economics 101.
Back to Musk
I tweeted multiple times to Elon Musk that Twitter is not worth more than $5B. That amount represents the original investment of Musk in Twitter. The buy was meant to be a shot over the bow. However, in truth Twitter is not worth the paper I write this article on. {Note: no trees were killed in the preparation of this article.}
In other words, Twitter is worthless.
Twitter is an over-valued business that serves but one purpose: propaganda for Democrats.
Variety reported on the situation:
The right-wing Twitter power user, through a letter sent Friday from his lawyers to the social network, officially claimed that he was nixing the pact reached in April because Twitter “appears to have made false and misleading representations,” including “dramatically understating the proportion of spam and false accounts.” Why the world’s wealthiest individual seemingly failed to conduct due diligence on this issue prior to clinching an acquisition agreement is unclear; Wall Street analysts have suggested Musk was in fact seeking a lower price tag given the stock market’s sharp year-to-date decline. Twitter said Friday it plans to go to court to force Musk to comply with the original terms of his offer.
Musk is doing his due-diligence on Twitter. Twitter has repeatedly lied about number of users. But worse, Twitter has not made a serious profit for anybody except a few people trading its stock and a handful of people who got out.
CNN reported:
Twitter turned its first annual profit in 2018, but the company has a problem it doesn’t want to talk about.
The company said Thursday it had 321 million monthly active users in the final three months of last year, down five million from the prior quarter and nine million from the same period a year ago.
That marked the third consecutive quarter of user declines. And soon, the company will stop disclosing the figure entirely.
In its earnings report, Twitter said it plans to stop disclosing the monthly active user number after the first quarter of this year in favor of a newly introduced figure on “monetizable” daily active users.
Snapchat and Facebook also disclose daily active user numbers, though Twitter says its own figure is “not comparable” as it only includes users who are seeing ads.
Twitter said it had 126 million daily users, up from 124 million in the prior quarter and 115 million a year ago, suggesting modest growth in engagement on the platform.
So Twitter turned a profit in 2018. But it began its steep decline. In other words, after all their hard work building its base of business only to destroy it with Leftist policies.
At a $44 billion price tag, it would take quite a while for Musk to get his money back.
And Twitter doesn’t have any advantage in the marketplace, outside of user base and name recognition. For $44 billion, Musk could buy both easily.
Techxplore explains further:
Listed on the New York Stock Exchange for just under nine years, Twitter has posted a net loss every year, except 2018 and 2019 when it made a profit of just over $1 billion.
Musk is paying above $44 billion for the company, an amount dwarfed by Facebook’s valuation of more than $500 billion.
Twitter’s revenues are mainly derived from advertising rather than its user base, which isn’t large enough to make up its finances.
At the end of last year, it claimed 217 million so-called “monetizable” users, who are exposed to advertising on the platform. That’s far from the 1.93 billion Facebook subscribers.
Clearly, any moron can see why Twitter is way over-valued at $44 billion or even the $5B or so Musk has invested so far.
So why did Musk even offer to buy this junk company? To right the wrong.
Multiple media outlets claim Musk backing out of the deal to buy Twitter foretells legal battles. I can’t wait to see the richest man in the world bring down a Democratic Party operative.
What leg does Twitter have to stand on?
Their model is built on a valuation of ad income and leveraging users. First, many of their users proved to be fake and/or duplicates. Twitter has been used as a tool to prop up selective people, mostly Democrats, and to take down selective people, mostly conservatives. This is another provable fact.
Musk essentially has invested $5B in conservatism. He doesn’t care if he loses the $5B he’s invested in Twitter. If he plays his cards right, he can buy it later for pennies on the dollar.
Twitter employees are said to be devastated. Let’s hope! Because that fat payout is gone.
Now Leftists are attacking Musk on social media with “pull out” jokes. But the joke is on them. Because as pregnancy jokes go, Musk is fortunate to have pulled out early on Twitter. Buying this defunct company would be like fathering a child with Omarosa.
Unlike the Washington Post, Twitter won’t have a billionaire backer. They will die a slow and painful death. Anybody remember MySpace?
Twitter is in a meltdown. And once they have crashed and burned, perhaps we can get Elon to do the same to Facebook?
