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Why Elon Musk Bought Twitter ? | The Secret Game of Elon Musk | Business Case Study - YouTube
Channel: Aditya Saini
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25th March 2022
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At 2.34 in the night
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Elon musks tweet one tweet.
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In that, he wrote that,
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Free speech is essential to a functioning democracy.
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Do you believe Twitter rigorously adheres to this principle?
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After that, he tweets one following tweet.
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The consequences of this poll will be important.
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Please vote carefully.
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For which 2 million people voted No.
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Who knew in this one tweet there are so many secrets hidden.
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In this, there are such unsaid things,
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Which are not known by many people.
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After a few days of Elon musk's tweet
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There comes news,
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Elon musk with a 9.2% stake
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Is now the largest shareholder of Twitter.
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And then on 14 April 2022,
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Elon musk does an announcement
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That he wants to acquire Twitter for 43 Billion dollars.
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Now, the question is
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Why does he want to buy Twitter?
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And most importantly,
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Twitter from this forceful acquisition
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To save themselves what are they doing?
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Is all this just for Freedom of speech?
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Or the way he acquired tesla,
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And revolutionalized it
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The same thing he wants to do with Twitter.
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Or behind all this,
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There are some secrets hidden
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That is not known by anyone.
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So this story starts in 2006,
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When Jack Dorsey got the idea of SMS based platform.
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With this idea,
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ODEO which was an audio podcasting platform
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Meets its co-founder Evan Williams.
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When Evan heard this idea,
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He gives Jack the idea of refining it more.
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Jack works a bit more on this idea,
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And finally makes a small product.
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Today we all know it as "Twitter".
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When Twitter started at that time Facebook & Myspace
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These two players were dominating the market.
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At that did anyone ever thought in their dreams,
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Such a platform without photos or video
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You can upload anything except 140 characters text message
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It will become so huge one day.
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But many people don't know that
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On Twitter, there are some things hidden
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Because of this today it is a huge platform
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That Elon Musk wants to acquire it.
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Twitter started with a simple website.
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Who knew that one day this website,
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For celebrities, Politicians and entrepreneurs
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Will be so important for them.
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Many of us don't understand the power of websites.
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Well, the reality is,
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Websites get you started in your online journey.
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Amazon, Flipkart , Swiggy , Zomato
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And in fact Twitter
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All these billion-dollar businesses
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Started with a simple idea and a simple website.
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If you want to take your business online,
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Then you just need 3 things.
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One website, One web developer, and hosting.
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Hosting where all your website's data is stored.
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That you can get on many websites.
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But if you want the best,
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Then I would suggest "Hostinger".
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Hostinger has many benefits.
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You can get hosting in quality & affordable pricing.
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Along with you get a free domain name.
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Which if you will purchase from any other website,
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Then you need to buy a domain name separately.
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And you know what the best part is,
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On this hostinger, you can get many website building options
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And a 30-day free trial.
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Means in 30 days,
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You can cancel your hosting.
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If you don't like their service.
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Plus moreover,
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If you are doing a business,
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You must have a professional mail id
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And 24 hours live support.
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So Hostinger provides all these things.
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Other than that as you are on my channel,
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So if you use my coupon code "ADITYA"
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Then you will get a 7% discount.
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I have mentioned the link in the description & comment box.
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On 25th March when Elon musk tweeted,
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Then reply Twitter said that,
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"Twitter has absolute freedom for speech".
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Well,
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That's not true.
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20th March 2022,
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Twitter locked an account named Babylon Bee.
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Saying they have violated Twitter rules.
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Well actually Babylon's Bee
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Called the US assistant secretary a Man of the year in a tweet.
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After which Twitter locks his account.
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And until they don't delete the tweet,
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They cannot do another tweet.
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In fact US former president Donald trump
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Is banned on Twitter.
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In these things, Elon musk says that,
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He is a free speech absolute.
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But the question is,
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Is it true?
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Elon musks own company, Tesla,
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Is fighting discrimination-based lawsuits.
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And one Tesla employee
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Who uploaded their car review video on Youtube
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He was fired the same month.
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similarly, if you see the company's stock price,
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Then ever since the company has become public,
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The company's stock has hardly touched 50$.
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Twitter's business is not going that well.
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And moreover,
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Twitter is such a social media platform,
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Which had comparatively than other social media platforms
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There were very less people.
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Now the question is,
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If it is like this, then why does Elon musk want Twitter?
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For money?
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But the person who already has 250 Billion dollars networth
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I don't think so for him matters so much.
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So what is the real reason?
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Well, Understand this thing very carefully.
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April 2007,
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Barack Obama joins Twitter.
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And during his full presential election time
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Very aggressively through text broadcasting
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Influence people.
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If you see in India,
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Our prime minister Mr.Narendra Modi
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Does this same thing.
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Have you ever thought,
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All these people,
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May be active on other social media or not,
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But all these people,
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Why are they aggressively active on Twitter?
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Well, the answer is hidden in a 2009 research paper.
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So the answer to this thing is,
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"Social capital".
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Now listen to me very very carefully.
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If you watch youtube regularly,
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Then you must have definitely seen this person.
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Joginder has 11.4 lakh subscribers.
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And on every video average views of 20 lakhs
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Everyone would think,
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What a fantastic influence!
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And this is where 99% of people are wrong.
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In Influence and capitalizable influence
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Has a big difference.
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Capitalizable is that audience
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With which you can generate revenue.
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And here I am not talking about ad revenue.
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No hate,
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Do you think tomorrow if Joginder promotes any product
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Then will you buy that product?
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Well, chances are No.
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But similarly, if the same thing is told by Lakshay Chaudhary
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Then there are very high chances,
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That you buy that product.
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And Lakshay will make lakhs of rupees.
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The audience of both people is the same.
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But there is a vast difference between the results.
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So it does not matter,
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How much audience do you have?
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It matters that,
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How much capitalizable audience do you have?
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And this is where the twist is.
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Elon musk
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Has 8 crores 30 lakh capitalizable audience on Twitter
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I know you must be thinking that,
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Tomorrow if Elon musk tweets anything about Tesla,
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Then 8 crore people won't buy Tesla.
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Yes absolutely right.
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They won't buy.
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But 8 crore people are more than enough
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To create hype about anything in this world.
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And if you will closely observe,
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Elon Musk's every tweet is retweeted lakhs of times.
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Because of this, his total reach is more than 40 crore people
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By Dogecoin tweet, its value increased up to 25% in a day.
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Due to the Bitcoin tweet,
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In one day the bitcoin was 17% down.
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And not only this,
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Because of his one tweet,
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$250 20,000 Tesla tequila bottles were sold.
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And this is the power of social capital.
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And because Twitter is a prime social network for world leaders
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So for Elon musk their Twitter account,
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Is more valuable than Instagram or Facebook account.
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But this story has a different side.
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That is the fight for democracy.
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David sacks who used to work with Elon musk in Paypal
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Says that,
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Elon Musk always supports free speech.
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And everyone knows this.
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In nondemocratic countries
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How companies have to work under threat.
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Somewhere businessman is killed.
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And somewhere businessman stays hidden for months.
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Elon Musk says that,
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Twitter undermines democracy.
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And because until now, no one knows this,
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How twitters algorithm works?
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So no one understood
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Which tweets are promoted forward?
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And which tweets shouldn't be promoted by Twitter?
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And by changing this thing,
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They want to make the Twitter algorithm an open-source.
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And want to convert twitter into a war zone.
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Where there are no rules.
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Anyone can say what they want to say.
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Interestingly, very few people know that,
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Twitter founder Jack Dorsey openly said that,
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Twitter is for sale.
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Twitter for always for sale.
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I know you must be thinking,
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If it is like that
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Then why is Elon musk not able to acquire Twitter?
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Well, the reason is "The poison pill strategy".
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Poison pill strategy in 1982,
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Was made by a lawyer named Martin lipton.
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If anyone forcefully tries to acquire any company
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Then that company should protect itself.
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This year at January's end,
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Elon musk secretly starts acquiring Twitter shares.
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And finally on 10 April
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Everyone in the world knows that,
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Elon musk with a 9.2% stake
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Becomes Twitter's largest shareholder.
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14 April 2022,
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Elon musk buys Twitter $45 share at $54
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Gives a buyout proposal of buying whole company at $43 billion
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And seeing this, company to save themselves from this
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Uses a poison pill strategy.
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So according to this strategy,
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If anyone tries to acquire more than 15% stakes
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Then leaving that shareholder,
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The remaining shareholders,
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Company shares,
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Will get to buy at a 50% bonus discount rate.
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Today in Twitter market there is a total of 763.58 Million shares.
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Among which 73 Million shares,
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Belong to Elon musk.
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So consider that if this strategy gets activated
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Then from Elon musk's total shares
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The remaining are a total of 690 million shares.
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Now those who have these 690 million shares,
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They all will get 1 is to 1 bonus.
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This means the one who already has a share,
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By splitting that share he will now have two shares.
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When this will happen,
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690 million + 690 million + Elon musk's 70 million shares
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In total there will be 1450 million shares.
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Because of this Elon musks' 9.2% stake
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Will become 5%.
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So today even if he tries,
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Then too he can't acquire Twitter.
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And even if he tries to do this
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Then he may suffer huge losses.
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I know you must be thinking that,
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If Twitter was always for sale,
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So today if someone wants to buy it
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Then why is this company protecting itself?
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Well, the reason is "Impact potential".
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Revenue and stock price may increase or not
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But the speed at which Twitter's impact is growing,
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Twitter's shareholders think that,
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Its futuristic value of it,
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Is more than what Elon musk has offered.
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And moreover,
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Because is a platform that has the world's many great leaders,
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So noon among them would want that,
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This platforms ownership goes to someone,
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Because of whose, one tweet full crypto market gets changed.
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Seriously, Today we are seeing the power of the internet.
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From our business to our life,
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Today everything is on the internet.
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And yes if your business is not digital yet,
[554]
Then you should also create your website,
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Take it to digital.
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From domain name to hosting,
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If you want everything at the best quality & best price.
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Then I mentioned Hostinger's link in the description.
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And don't forget to use my coupon code "ADITYA".
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Very few people among us know that,
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The beginning of Cadbury did not start with chocolate.
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Interestingly do you know the first product of Cadbury
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Was made to get rid of the addiction to alcohol.
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Have you ever thought
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What special thing does Cadbury have because of which
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It has India's 70% market share.
[585]
Well, if you see the video on right you will get to know.
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