After Musk announced the acquisition of Twitter, no one doubted whether he could afford it. However, there are many people who doubt that he has the energy to manage this huge media company.
To counter Musk's acquisition, Twitter even prepared a "poison pill" plan, which resulted in Musk giving a price that the board could not refuse.
People sometimes forget that Elon Musk, a citizen of South Africa, the United States and Canada, is the boss of Tesla, space industry SPACEX, tunnel construction company Boring COMPANY, brain chip company NEURALINK and other four companies.
Buying another Twitter doesn't seem to have much of an impact. After all, he is a true master of time management, and under high intensity work, it does not even affect his dating with beautiful women.
On the same day musk struck a $44 billion deal with Twitter, he flew to Boca Chica, Texas, to attend SpaceX's regular meeting at 10 p.m. as CEO.
Although Musk has a lot of negative and positive images on social media, which are very different from the bosses of traditional multinational groups, the side that is shown to the public is only a small part. From his capital operation means, Xingkong Jun can see a strong and powerful purpose and execution.
What is the value of Twitter for his business footprint?
Marketing & Prus Department.
Tesla will have sales of $53.8 billion in 2021 and is expected to exceed $100 billion in 2022. But the company does not have a marketing and public relations department, which means that the company saves a lot of marketing expenses.
So, how does Tesla advertise?
If you pay attention, you will find that Tesla rarely advertises in traditional media, and its promotion channel is mainly through social media.
And the social media publicity method is still the kind that does not cost money: Musk personally carries the goods.
Assuming tesla comes up with 10% of its annual sales for marketing, it may only take 2 or 3 years to acquire Twitter. And the marketing effect that Twitter can bring to Tesla is far more than investing tens of billions of dollars in traditional media.
It was a good deal.
This logic is not complicated, why did others not think?
Lee thought: Shouting at me?
Tesla is ostensibly a car company, but in reality it's not that simple, but it has pioneered a whole new business model.
For example, the direct sales model of dealers is completely abandoned, which is fundamentally different from traditional car companies.
Rather than saying that Musk is building a car, it is trying to build a native business model of Internet genes.
The existing business model has lasted for thousands of years, starting with the Arabs, transporting products from afar to the local area and reselling them to end users through local agencies.
There are countless middlemen living on the price difference, and the root of the price difference comes from the information difference.
The highly developed Internet has smoothed out the information gap and helped enterprises to reach every customer directly.
It turns out that Tesla has achieved great success despite almost completely abandoning the traditional business model.
On February 10, Twitter released its annual report, 2021 revenue of $5.08 billion, up 37% year-on-year, and net loss narrowed to $220 million year-on-year.
In contrast, Sina Weibo's annual report shows that the user scale increased by 10% year-on-year, with revenue of US$2.257 billion, an increase of 33.6% year-on-year, and net profit attributable to the mother of 428 million US dollars, an increase of 36.7% year-on-year.
In a sense, although Weibo started with "high imitation" Twitter, it at least found a suitable profit model, and Twitter is still struggling in the quagmire of losses.
What is the root cause of Weibo's profitability?
According to the investigation, Ali holds 28.7% of the shares of Weibo, which is the second largest shareholder after Sina. In other words, Weibo was acquired by Ali to some extent.
It is also with ali's support in commercialization that Weibo has real profitability.
So, Musk's acquisition of Twitter may really kill two birds with one stone: Tesla has the world's strongest market public relations department, and Twitter has profitability.