Musk’s acquisition of Twitter is to speculate on the currency?

According to overseas media reports, the acquisition of Twitter, which has been entangled for half a year, has finally settled. Tesla CEO and the world’s richest man Musk has officially completed the privatization of Twitter at a price of $44 billion (approximately equivalent to 320 billion yuan)!

The whole acquisition went through twists and turns. First, Musk proposed a good price. Twitter initially disagreed and then accepted it. Musk then tried to terminate the deal in early July, citing Twitter’s serious violation of the agreement. Musk ‘s camp believes that Twitter’s spam account data cannot be verified, but this may be because Musk believes the acquisition price is too high in our previous analysis. The matter then went to court, and it was not until earlier this month that Musk proposed to continue to buy Twitter for the original $44 billion price, while calling on the other party to drop the lawsuit against him, and then the acquisition was finally finalized.

On October 26, he visited Twitter’s headquarters in San Francisco, and at the same time posted a video of himself walking into the office with a sink, and changed his public profile to “Chief Twit.”

He wrote in a video tweet: “Let that sink in!” For Musk’s tweet, some people thought it was “advance and retreat with it (Twitter) “, some people think that he has to “think about (transformation)”. But I think it means “let the (acquisition) boots fall”.

Musk hinted that he was about to start a clean-up. So spend so much effort, spend so much money, for what? Is it just rich and self-willed or just to win Trump?

Why Musk paid huge sums to buy Twitter

Twitter is the originator of microblogging, you can also understand it as the US version of microblogging, with hundreds of millions of daily active users around the world.

Did you buy Twitter to bring in more wealth? At least what Musk himself said and Twitter’s profitability can’t be seen at the moment.

Musk also published his reasons for the purchase in an open letter to advertisers, simply stating that he believes that for human civilization, there is a need for a public digital city square where people can debate beliefs in a healthy way, and There is no need to resort to violence. But at present, the forces on social media have split into the extreme right or the extreme left, generating more hatred and dividing our society. However, many traditional media cater to the trend of polarization in pursuit of click-through rate and revenue, which will make everyone lose the opportunity for dialogue.

He emphasized that most of the reasons for evaluating him online are wrong. He didn’t buy Twitter for money, he did it to help people because he loves people.

Whether he really thinks that way or not, give his vision a round of applause.

However, I think he is also trying to appease the mood of advertisers and reiterate the basic rules of the platform. Because the letter later mentioned that speaking on Twitter will not be “absolutely free”, and that speakers need to bear certain consequences and abide by the law. This may be to reassure advertisers that the platform will not become a place full of illegal information.

Soon, he mentioned that if advertising is done well, it can not only convey information, but also delight users. Advertising needs to be accurate, relevant to users, and close to the needs of each user. Low-relevance ads are spam, but high-relevance ads are actually good content. This may be a disguised transmission of some ideas and requirements for the advertising business in the future.

In short, first stabilize the fundamentals, and welcome advertisers to continue long-term cooperation with Twitter.

So, Musk finally talked from faith back to business, after all, Twitter is a business company. Since it went public in 2012, only 2018 and 2019 were profitable, and the rest were losses. Musk’s acquisition may not be for pure financial investment, but if it keeps losing money, it will be embarrassing that the company can’t survive.

Of course, some people speculate that Musk has a bigger goal, or a hidden purpose, such as bringing the famous Trump back, etc. It is uncertain whether it has a clear political purpose, but it does seem to stimulate Twitter. The traffic and attention, after all, once Trump returns, he must be a super Internet celebrity.

In any case, with so much money, Musk should have the idea of ​​having more birds with one stone, and perhaps some clues can be seen from the supporters behind him.

Behind Musk’s acquisition, there is actually him

The money that Musk acquired did not come entirely from himself, after all, his circle of friends is still very strong.

As previously reported by the media, Musk told co-investors who had pledged to help him complete the Twitter acquisition that he planned to close the deal by Oct. 28. Equity investors such as Sequoia Capital and Qatar Investment Authority have received documents from Musk’s lawyers.

In addition, according to Jiemian News, on October 28, Binance, the world’s largest cryptocurrency exchange, confirmed that it was an equity investor in the acquisition of Twitter by the world’s richest man, Elon Musk. Other disclosed investors include Oracle co-founder Larry Ellison, asset managers Fidelity, Brookfield, as well as Sequoia Capital and A16z.

The most interesting of these is the support of Binance, which means that Twitter does not rule out the possibility of cooperating with the public currency circle in the future. I think that Musk and Tesla have invested in Bitcoin before and hyped Dogecoin. , then will the Twitter account also be connected with the currency circle account in the future? Will the platform cooperate with some currency issuance projects? Or at least open a platform for investing in NFTs, digital collections?

The media also reported that just two days before the completion of the acquisition, Changpeng Zhao reaffirmed his support for Elon Musk. At the Future Investment Initiative conference in Riyadh, Saudi Arabia, on Tuesday, Changpeng Zhao was asked if he would continue to support Musk. When acquiring Twitter, he gave a positive answer, “I think so.” Zhao Changpeng said.

Changpeng Zhao

Unexpectedly, Musk has him behind his back.

A Binance spokesperson told Jiemian News: “As a Web3 infrastructure company, we look forward to bringing new solutions to some of the problems inherent in the Web2 ecosystem.”

Such cooperation has the potential to allow capital markets to redefine Twitter and reassess its value.

Changpeng Zhao, the founder of Binance, once said that he is looking forward to a new, more encrypted Twitter.

New Twitter: X, speculation or “WeChat”?

The news of Binance becoming a Twitter shareholder is both exciting and a little worrying. People expect that Web3 can bring greater changes to the Internet, but they are also worried, will the tweets sent by themselves be encrypted on the chain and can never be deleted?

Let go of the imagination, the user’s Twitter account address may become an encrypted address or an encrypted wallet, and the user has full ownership of the account instead of being completely controlled by the platform. This may be a subversive revolution to social media. .

In addition, the data rights of the user account can also belong to the user, and the user can decide whether to authorize the platform to obtain revenue. In the future, the combination of Web3 technology can be more accurate, and the user will be more open to advertising, because some advertising revenue will be shared. .

Well-known users can directly issue their own tokens on the platform. I believe that a big V like Trump is fully capable, and the platform will charge some handling fees or transaction fees.

In this way, Twitter uses new technology to connect users around the world and return a part of the ownership to users, and in addition to advertising, it can open up another revenue model.

Of course, the above is purely the author’s imagination, whether Twitter will try it, and which level it will try, this still needs to observe Musk’s follow-up actions.

According to media reports, the market also speculated that Musk may transform Twitter into a WeChat-like super application. On October 5, Musk tweeted that “the purchase of Twitter is a catalyst for the creation of X-App” and “can shorten the process by three to five years.” It is said that “X” will essentially become a WeChat-like “one-stop shop” where users can implement almost all daily consumption functions on this app.

Several foreign media reported that Musk is now “in charge” of Twitter, and has fired Twitter CEO Parag Agrawal and CFO Ned Segal. Two former executives have left the company’s San Francisco headquarters, and it’s unclear who will replace the positions.

Judging from the fact that Musk has fired existing executives, it is very likely that Musk will vigorously transform Twitter. In any case, Musk will definitely bring changes to the now tepid Twitter!

References:

Jiemian News: Binance confirmed to be a new shareholder of Twitter, Changpeng Zhao said that it had remitted $500 million to Musk

First Financial: The acquisition of Twitter, the firing of executives, Musk set off a huge wave of social media reform

Shanxi Evening News: 44 billion acquisition settled? Musk walks into Twitter headquarters with a sink

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