PanamaTimes

Friday, Apr 26, 2024

Elon Musk's $44 Billion Twitter Takeover Heads For Business School Case Study

Elon Musk's $44 Billion Twitter Takeover Heads For Business School Case Study

The chief executive of electric car maker Tesla Inc performed a U-turn by proposing to buy Twitter at the agreed price having spent months trying to get out of the deal.

Elon Musk's $44 billion Twitter takeover saga comes with all the drama necessary to be immortalised in case studies for future captains of industry, as the tycoon's on-off pursuit of the social media platform and unique management style make for a union like no other.

The chief executive of electric car maker Tesla Inc performed a U-turn by proposing to buy Twitter at the agreed price having spent months trying to get out of the deal, just as a Delaware Court was getting ready to rule on the standoff.

"This is unique in many cases," said Arturo Bris, Professor of Finance and Director of IMD World Competitiveness Center. "It is definitely a business school case study. Because it's about poison pills, breakup fees, lawsuits, hostility."

While there are examples of acrimonious or hostile takeovers such as AOL-Time Warner and Sanofi-Aventis-Genzyme, here the world's richest man - who has long used his own Twitter account to press for more freedom of speech - is working to impose his will on another corporation.

Musk's attempt to take over Twitter is "a gift to professors and students", said Joshua White, a professor at Vanderbilt University, calling the situation "unprecedented".

UNIQUE STYLE


"Frankly I hate doing mgmt stuff," Musk wrote in a text message to Twitter Chief Executive Parag Agrawal in the run up to making an offer for the company, according to legal documents related to the battle.

"I kinda don't think anyone should be the boss of anyone," he wrote, while another message noted he could "interface way better with engineers who are able to do hardcore programming than with program manager/MBA types".

While the messages reflect his unusual approach to running a business, taking control of Twitter will mean managing it, at least initially. Musk has said he would take the reins as CEO but only until he finds a new executive with expertise in the media industry.

"What is to come is unclear," said Donna Hitscherich, a Columbia Business School professor.

Musk did not respond to a request for comment on the challenges of running the company after such a contentious deal. Twitter declined to comment.

Academics and analysts say Musk should focus on restructuring the social media company's business model after second-quarter revenue dropped amid the court battle and a weakening digital advertising market.

Musk has hinted at wanting to turn Twitter into what he called an "everything app" like the wildly popular WeChat in China which offers everything from banking to chatting. That will be difficult, analysts said, especially in the United States where consumers are already well served by multiple services.

Whether or how Musk pulls it off is not known yet. What analysts and academics can agree on is that considerable energy and momentum could be sapped by what they forecast will be heavy turnover among Twitter's staff and senior management.

Musk spent months criticising the company's management and complaining about salaries, what he perceived as political bias and automated 'bot accounts' - of which he thinks there are many more than Twitter estimates.

Addressing employees directly in June, he said there needed to be "rationalisation of headcount and expenses" while stressing that staff, who currently have relatively free rein to choose where they work, should lean towards working in an office.

One thing is for sure: Musk is going to receive huge attention and scrutiny as he figures out how to run Twitter. Success or failure, it will be an instant business school classroom staple, experts say.

"I'm really, really looking forward to the end," said Bris. "So I can teach this case in class."

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×