5/17 (Tue.) Elon Musk’s Twitter Takeover Saga (Host: Iris)

[Iris Wu]

What will Twitter's future look like under Elon Musk? It’s a $44 billion dollar question!

Twitter is not even on the list of the top 10 most popular social media platforms, and with wild fluctuations in its earnings outlook, but why has the world’s richest person, Elon Musk, been so passionate about owning it?

The following timeline marks the major events in Musk’s Twitter takeover:


To me, it is one of the most effective technology leveraged buyouts (LBO) in recent history. I’ve studied the commentaries and analyses from the far-right to the far-left. The takeover process wasn’t quite smooth and friendly, and the result was like a drama, but the acquisition process was well-explained in many articles and commentators’ analyses.

It’s pretty clear how the world’s richest person funded $44 billion and put arguably the most influential social media platform into his own pocket, but when anyone was asked what Elon Musk will do with Twitter, you got pretty much the same answer. What was the answer?

Let’s have a chat on Tuesday, 5/17/22. Hope to see you at the meeting online.

Reference Materials
Videos:
https://www.youtube.com/watch?v=RiTVcFJef5Q (6 min)
Gravitas: What will Elon Musk's Twitter look like?)
https://www.youtube.com/watch?v=J3klw7jXxL0 (5.5 min)
Exclusive: Elon Musk On Twitter Fame, Loneliness, And AI; The richest person’s sensitive side)

Article:
https://www.vox.com/recode/23042878/elo ... ree-speech
(Elon Musk says buying Twitter is about free speech. Does he know what that means? - Vox)

Optional Materials:
https://podcasts.apple.com/us/podcast/m ... 0558798559 (17 min, WSJ Podcast on 4/26/22)
https://www.youtube.com/watch?v=82pr19jgov0 (12 min; 4/19/22)
Twitter's Poison Pill defense against Elon Musk Explained)
https://www.youtube.com/watch?v=O82-WLKetjc (13 min)
Elon Musk is the Twitter Board's Worst Nightmare)

Questions for Discussion
Session I: What Has Happened?
Q1. What are the issues with social media platforms? Why has Elon Musk been so keen on taking control of Twitter?

Q2. What was the process of the Twitter takeover? What is a “poison pill”? Why did the Twitter board decide to sell itself to Elon Musk?

Q3. Is it OK for one person to own a very influential social media platform? Why or why not?

Q4. Why did Elon Musk put the deal on hold? Do you think the buyout will eventually go through?

Session II: What Now?
Q1. Why does the conservative party (the Republicans) welcome Musk’s takeover? Why are the liberals very critical of his ownership?

Q2. What will be changed in Twitter?

• a) Have you read false information on Twitter or any other social media platforms?
  b) How will Elon Musk implement his “free speech” policies?
  c) Should Twitter allow Donald Trump back? What did Elon Musk say and do you agree with him?

Q3. How will the Twitter takeover impact the social media ecosystem? What changes would you like to see in the overall social media environment?


*******************************************************************************************
Agenda:
6:45 ~ 7:00pm Greetings & Free Talk / Ordering Beverage or Meal / Getting Newcomer’s Information
7:00 ~ 7:10pm Opening Remarks / Newcomer’s Self-introduction / Grouping
(Session I)
7:10 ~ 7:50pm Discussion Session (40 mins)
7:50 ~ 8:00pm Summarization (10 mins)
8:00 ~ 8:05pm Regrouping / Instruction Giving / Taking a 10 Minutes Break (Intermission)
(Session II)
8:05 ~ 8:45pm Discussion Session (40 mins)
8:45 ~ 8:55pm Summarization (10 mins)
8:55 ~ 9:00pm Concluding Remarks / Announcements

Meeting Date: As shown on the Subject Line
Meeting Time: 7:00pm – 9:00pm

Online meeting:
Zoom meeting ID: 88548972682
Password: 784362
Link: https://us06web.zoom.us/j/88548972682...
#YoyoEnglishClub

Due to the early close business hour of Dante, there will be NO ON-SITE MEETING.

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[Rock]

Question: Is it OK for one person to own a popular social media platform?

I have a question about this question. Twitter is now "owned" by one person, Elon Musk. But was it not "owned" by a person or a small group of people, the board? Why would it become a problem now but not an issue in the past?

[Michael-liu]

Question: Is it OK for one person to own a popular social media platform?

I have a question about this question. Twitter is now "owned" by one person, Elon Musk. But was it not "owned" by a person or a small group of people, the board? Why would it become a problem now but not an issue in the past?

Before Elon Musk's takeover, Twitter is a public listed company, right？So, the stock shares each board member owns are still a small proportion, I suppose.

But now, How much percentage of shares does Elon Musk own？ Is it 100% ?

[Iris Wu]

GREAT!!!
First, all the questions are for discussion and debate. They do not necessarily represent the views or opinions of the host. -- Host Disclaimer!

Twitter is a "public" company. It is owned by all the shareholders, and anyone can buy their stocks and become a shareholder. It is not owned by the board.
Once Elon Musk completes the transaction, Twitter will be owned by himself and a couple of banks (creditors). Technically, they don't need to report to the board members or shareholders.

Percentage-wise, the whole transaction is $44 billion. Elon Musk paid $21 billion out of his own pocket, and he "uses a $12.5 billion loan with his Tesla shares as collateral. Banks are committing another $13 billion in debt financing." All the funds are under his own name. Creditors (banks) have the collateral. They have the right to sell the assets if the loans go into default, but they may not have the right to interfere with the daily operations of the business.

--> This is based on my limited understanding. Any correction and additional info are very much welcome and appreciated.

[Iris Wu]

Question: Is it OK for one person to own a popular social media platform?
I have a question about this question. Twitter is now "owned" by one person, Elon Musk. But was it not "owned" by a person or a small group of people, the board? Why would it become a problem now but not an issue in the past?

To be honest, this question was not originated from me. It was from a discussion group I joined online and I wasn't fond of this question, either and had similar comments. As a matter of fact, Meta owns FB, WhatsApp, and Instagram, and many companies owned by behind-the-scenes CEOs/funders, nobody raised an eyebrow. Why did Twitter takeover get so rigorous scrutiny?

But the question did generate some debates in the discussion group I joined, I think it's good to adopt the question in our meeting for "exchange of views"!

[Rock]

But of course we can always learn something out of anything, even when it doesn't seem right. I believe all those news outlets are controlled by either one person or a small bunch of people. If the management is unbiased, then we see unbiased information, and vice versa. It doesn't really matter if the majority of the shares are owned by the public or not. If I, and the other 120000 people, owned 85% of Liberty Times, can we make it blue?

Democracy is not the way to run a company, I guess.

[Iris Wu]

There are many aspects to this topic, but the following is the core of my thinking process. Hope it helps the preparation and discussion.

1) What are the issues with social media platforms?

2) What are the controversial opinions about Elon Musk’s Twitter takeover?

3) Is Elon Musk’s “First Principles” methodology going to work on Twitter renovation?
(Can his proven record on SpaceX, Tesla, Starlink be carried over to Twitter?)

Rain or shine, we’ll have a chat on Tuesday.

[Iris Wu]

For the record,
“Past performance is no guarantee of future results."
I did not mean Elon Musk’s track record will ensure success in social media reform.
Humanity stuff (free speech etc.) is usually more complicated than mechanical or even rocket science.

Personally, I might just appreciate his unconventional effort in science and technology, especially the autonomous vehicles.
Self-driving cars are crucial to my independence when I get too old and can no longer drive in the US. The whole thing was so far-fetched not long ago, but now we can see the light at the end of the tunnel.

[Rock]

For the record,

Humanity stuff (free speech etc.) is usually more complicated than mechanical or even rocket science.

I guess that's why some people prefer it to be simple and go for no free speech. Come to think about it, if we give freedom of speech to AI in the future, would they debate with each other?