Elon Musk Effect on Twitters Business and Brand Equity

 



Effect on Share Price, Twitter Business, Employees, CEO and Exec Team
  • Elon Musk who leads Tesla and Space X announced buying Twitter for $44 Bn supported by venture capital firm Andreessen Horowitz, the crypto exchange  Binance, and Oracles CEO Larry Ellison. This helped the falling share price to rise again. 
  • On July 10 he announces to pull out because of a lack of clarity on users (primarily bots) and financials and since then the price has fallen back to the same price of $33 when the deal was announced to acquire.
  • Prior to this deal, the share price was in decline from early 2021.
  • It is likely that it now goes into litigation and worst for Musk will be to pay $1Bn in the penalty, but it has a detrimental effect on Twitter's business, employees (morale), and more importantly, its brand equity will take a severe hit, resulting in further decline.
  • Twitter CEO and his executive team will not survive this fiasco.






Comments

Popular posts from this blog

Telcos Monetising Assets - Connectivity in Play

Starlinks Growing Presence in Australia - Reducing Digital Divide in Rural Australia