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.