Last Friday, Elon Musk announced his termination of offer to buy Twitter, proving the market right and starting a legal battle between the two parties. As much as I respect Mr. Musk as a business person, he is an egotistical man who I wouldn’t count as a steward of free speech on the net. If he ended up owning Twitter, I expect him to tear it down and rebuild it with profitability as the primary focus. So from Twitter’s perspective (and its users), this deal cancellation preserves the service as they are accustomed to using/providing.
This termination is also good for Musk because he’s not forced to sell his shares of Tesla to raise capital for the purchase price. Big sales of stock = downward pressure on price, and we saw plenty of down days before recessionary fears became prevalent amongst investors.
As for what happens next, I expect both sides to negotiate a settlement and save on the expensive legal fees of a court battle. Despite his wealth, Musk is a frugal man. π
In regards to Twitter, I expect the company to muddle along with decreased ad revenues. Since I’m playing armchair QB in this post, let me throw out an idea for Twitter: Twitter Local. In my view, the service works best as a digital version of a local town crier. So formalize that aspect by offering a localized version of Twitter based upon user zip codes. In other words, Twitter Local would only involve people living in the same neighborhood, and it’s a means of developing a local, digitalized community. Businesses within the zip code could offer deals/specials to local residents (and pay a fee to Twitter for advertising). Public announcements such as reminders to participate in voting, and free services (such as free lunch for kids) would also reach target residents.
I think Twitter has become too globalized in general, and this approach makes it difficult for advertisers to target their desired audience set. A Twitter Local service would resolve this gap while expanding its relevance to businesses and consumers alike.