Beautiful Virgin Islands

Tuesday, Mar 28, 2023

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

Beautiful Virgin Islands
Close
0:00
0:00
AOC explains why she opposes banning TikTok
I have a dream, MLK inspiring speech
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
Aretha Franklin, Marvis Staples - Oh Happy Day
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
BVI Freedom Song
Gordon Moore, a co-founder of Intel Corporation, died at 94
Billy Preston - You Can't Beat God Giving (Live)
Powell: Silicon Valley Bank was an 'outlier'
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Donald Trump arrested – Twitter goes wild with doctored pictures
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Hello Dolly
Paris Rioting vs Macron anti democratic law
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
'Sexual Fantasy' Assignment At US School Outrages Parents
Bob Marley - Get Up Stand Up
Credit Suisse to borrow $54 billion from Swiss central bank
Yes He Can
Russian Hackers Preparing New Cyber Assault Against Ukraine
What A Friend We Have In Jesus
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Unforgettable
If this was in Tehran, Moscow or Hong Kong
Touch The Hem Of His Garment
Nashville police officer, and a female driver shooting one another
The Lord's Prayer
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
THE GOD MOVEMENT...BEAUTIFUL BVI
Mexican President Claims Mexico is Safer than the U.S.
Siyahamba
A brief banking situation report
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Lady bites police officer and gets instantly reaction
Ramblin' Rose
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Protoje - Who Knows ft. Chronixx
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Pressure - Virgin Islands Nice
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Phil Wickham - House Of The Lord
Silicon Valley Bank exec was Lehman Brothers CFO
My God Is Real (Yes, God Is Real)
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Louis Armstrong - When The Saints Go Marching In
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
Kanye West Sunday Service - hallelujah, salvation, and glory
Elon Musk Is Planning To Build A Town In Texas For His Employees
Jonathan Nelson - I Believe (Island Medley
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
From The Virgin Islands Sqad Up
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Common, John Legend - Glory
Fitness scam
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
I have a dream, MLK inspiring speech
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Aretha Franklin, Marvis Staples - Oh Happy Day
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
BVI Freedom Song
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Billy Preston - You Can't Beat God Giving (Live)
Banking regulators close SVB, the largest bank failure since the financial crisis
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Hello Dolly
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Bob Marley - Get Up Stand Up
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
Yes He Can
It's the question on everyone's lips: could a four-day workweek be the future of employment?
What A Friend We Have In Jesus
×