Twitter by Elon musk – A Case Study

Twitter by Elon musk – A Case Study

The Rise and Fall of Twitter :

Twitter and Elon Musk are the new buzzwords. Tesla Technology is making shocking changes to its newly acquired Twitter. Laying off more than 50% of the staff is catching most of the attention. But what let him do this? Is it a good sign? Or is Twitter heading to a downfall? Today, we will dive deep into the facts about Twitter and Elon Musk to understand how Twitter build its empire and how Elon is revamping it.

History of Twitter :

Twitter is a famous social media website that was originally a podcasting platform named ODEO. Based in San Francisco. It was built by Nova Glass, Evan Will, and Jack Dorsey in early 2000. The launch of podcasting on I pods by Apple in 2005 caused a pause for ODEO, but without giving up, jack and Nova introduced the concept of Twitter to the rest of the staff.

On March 21, 2006, at 12:50 p.m. Dorsey, posted his first Twitter message

“Just Set Up My Twitter”, which was sold for $2.9 million last year (In March 2021).

The popularity of Twitter :

Initially, Twitter had just 140 users, but in 2007, Twitter completely dominated a conference named south by the Southwest Interactive Conference. A screen was purposely placed in the conference hall, which was exclusively used for streaming Twitter messages. During the event, Twitter usage went from 20,000 tweets to 60,000, and it received the festival’s web award price.

From here, Twitter began to pick up steam and instantly became the platform for knowing what was happening. Along with this fame, Twitter raised $1 million at a 5 million valuation, and also Mr. President Obama thanked his Twitter followers for their support following his farewell address to the nation, which has become the most popular tweet on the presidential account.

Seeing all this popularity and growth, Facebook tried to acquire Twitter in 2008. But Twitter, a growing social media platform, rejects Facebook’s offer and becomes a billionaire company by getting a raise of $ 100 billion at a $1 billion valuation.

In November 2013, Twitter went public with shares valued at$26 as the market opened and $44 when it closed. Today, Twitter has become a popular social media site with 290.5 million monthly active users and a revenue of $5 billion.

The popularity of Twitter :

As the world sees itself in the middle of COVID-19, social media has become overloaded with content related to the virus. Although Facebook and Instagram currently provide medical scope, perhaps no other social media platform consistently recreated a more significant role in the medical world than Twitter.

During this time, Twitter also had 139,000,000 to 186,000,000 users and $ 3.4 billion to $3.7 billion in revenue. Along with all this popularity and starting them, twitter also faced some hardships during COVID-19, as the Indian government asked Twitter to remove all the URLs and posts that criticized the way the Indian government was handling the pandemic situation.

In response to these, Twitter withdraws 50 posts and content and officially notifies the account holders. Nevertheless, Twitter has become one of the top trending social media platforms, making it very attractive in the business world where so many big investors and business tycoons are interested in investing in Twitter shares.

Why is Elon interested in Twitter?

Elon Musk is interested in buying shares on Twitter. On January 31, 2022, Elon Musk started to take Twitter share, reaching more than 5% stake by March 14, 2022. Now, what do you think? Why did Elon Musk buy shares on Twitter? As we all know, Elon Musk has 80 million followers on Twitter, which he will use for marketing his brands.

For example, Hyundai has to spend 1.5 lakhs for its advertisement, whereas Tesla needs ₹20/-. This is because Elon will do most of its advertising on Twitter, reducing Tesla’s advertising costs. According to the American Securities and Exchange Commission, the shareholder’s name will publicly announce if the share stake is more than 5% by April 4, 2022.

The stake rate Elon reached 9.2%, which was announced publicly on April 5. Twitter offered Elon to become one of the board members. After many controversies, Elon said YES to Twitter’s offer. On April 14, he offered to take the entire Twitter for $43 billion. Finally, on October 27, 2022, Elon took Twitter for $44 billion.

What are the Changes Made by Elon?

Right after Elon took over Twitter, he made Twitter from a public company to a private company and removed the CEO Parag Agarwal with other chief security members who were controlling misinformation and harmful content on Twitter. He also announced that a verified blue tick mark, which will be given to people who are public figures and influencers itis given to anyone who pays $8 per month.

As a consequence of these changes made by Elon, Twitter had a rapid loss of $4 million per day. It lost the biggest advertiser on Twitter, like General Mills, General Motors, and 15 plus other companies who stopped giving ads on Twitter. The number of spam accounts increased on Twitter due to which the rates of hatred speech raised

What is Elon’s vision for the future of Twitter?

Elon’s main objective was to make Twitter more profitable by making it a WeChat, a Chinese app where users can tweet, chat with each other video calls, play video games and make payments. Bring the freedom of speech by giving the power of free speech to every user of Twitter. Make Twitter get a revenue of $26 billion with 931 million active users by the end of 2028.

What are the key takeaways of Elon?

The key takeaways of Elon Musk are,

1. Never give power to someone who can’t handle it and doesn’t know its value.
2. Good businesses only have Eyes on the price, but only great businesses will focus on the values.
3. Great business always prioritizes people, not numbers.

So, this is an article about Twitter by Elon musk – A Case Study, What do you think will be the next move of Elon Musk and the future of Twitter? Let me know in the comments below. Until my next article keep reading Walpencil,