The billionaire founder of Tesla Motors said in an interview published Wednesday that he would not purchase social media company Twitter because he didn’t think his “crazy idea” of buying it would ever work. But he did say he was looking forward to watching its value skyrocket once it became free from current owner Jack Dorsey’s control.
Twitter continues to lose users at a rate faster than any other social network. At the end of 2017, the company had 330 million monthly active users, down from 360 million in September 2016.
Musk told The New York Times that he thought Twitter was losing its appeal. He told the paper that he loved Twitter, but it wasn’t clear what kind of service it could provide anymore.
He added that he sees more value in owning less companies, saying, “I am not sure if I want to own 100 different things, but I think it makes sense to own a few big ones.”
In August 2018, Musk tweeted that he was considering taking the company private through a reverse merger.
1. Elon Musk is trying to create his own version of Twitter called 'Boring Co'
2. He wants to dig tunnels under LA
3. And Elon said twitter is “not worth buying”
4. A person claiming to be Elon Musk tweeted this saying: ‘I am not going to buy Twitter. I think it is not worth acquiring'.
5. Elon has previously tried to acquire both Instagram and Tesla.
6. So what does this mean? Does this mean that Elon is planning to launch his own social media platform? Or is this a joke?
7. We cannot be sure but we believe that Elon was talking about Boring company's new tunneling project in Los Angeles.
8. This would mean that he wants to build tunnels in LA.
Elon Musk is widely known for being a billionaire entrepreneur. He has founded multiple successful businesses including Tesla Motors, SpaceX, and SolarCity. He recently announced plans to create a cryptocurrency called “bitcoin cash” and said he would spend his fortune launching satellites into orbit.
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On February 18th, 2016, he tweeted something strange:
“It’s kind of sad when you think about it. I mean, what’s next - buying Twitter?”
He later deleted the tweet, but many people noticed it and thought it was hilarious.
A few days later, he posted another similar tweet:
“I am not sure why Twitter is worth anything much at this point. Most likely someone paid a bunch of money for it. And then they were like ‘oh my god we spent too much money on this thing! We should probably shut it down’ and then they did. buy twitter”
Musk seems to be implying that Twitter isn’t actually worth much since its value appears to be tied to its purchase price. This caused some speculation amongst social media users that maybe he could sell it.
However, Musk responded and clarified that he will not be purchasing Twitter anytime soon. He wrote, "...I'm not going to be spending any of my personal funds on it."
In February 2019, SpaceX CEO Elon Musk revealed his plans to invest in a private equity firm called Boring Company and purchase Twitter. Now, according to Business Insider, Musk has decided against buying Twitter, citing its lack of profitability. “It’s just not worth it. They haven’t proven anything yet. I think they might actually lose money for a while,” Musk said at a meeting of Tesla owners.
Twitter Has Been Worthless Since 2011
Twitter experienced a sharp decline in its stock price after the company announced early in 2018 that it would begin charging businesses to advertise through the platform. Many analysts believed this was going to be a fatal blow for Twitter, but, in reality, it did much worse. Since then, Twitter’s stock price has dropped nearly 75 percent from its all time high of almost $45 per share. The social media giant still lost $500 million last quarter.
Twitter Is No Longer A Profitable Business
Twitter began losing money in 2012, which means it hasn’t had a profitable year since 2013. And its losses continued into 2018. The company lost $917 million last year alone, bringing its total losses to $6 billion since 2007. Not only does Twitter need to pay significant fees for advertising, but it also needs to pay developers a fee every time someone uses their software. So, when Twitter decided to stop paying developers as well, it caused even greater declines in revenue.
Twitter Is Going To Lose Even More Money This Year
The report predicts Twitter will continue to lose money in 2019, and it may take another three years before the company becomes profitable again. Analysts believe that Twitter will need to raise prices for users in order to make ends meet. According to the WSJ, the company could start raising rates by 2023.
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