After trying for months to end the deal, Tesla Inc’s chief executive proposed to buy Twitter at its agreed price.
The story of Elon Musk’s $44 Billion Twitter Takeover is full of drama that will be remembered in case studies for future industry leaders. Musk’s persistent pursuit of the social network platform and unique management style create a union like none other.
After having tried for months to end the deal, Tesla Inc’s chief executive proposed to buy Twitter at its agreed price. He did this just as the Delaware Court was about ready to rule.
Arturo Bris is Professor of Finance and Director at IMD World Competitiveness Center. “This is a unique case in many cases.” “This is certainly a case study for business schools. It is about poison pills, divorce fees, lawsuits and 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 over Twitter is “a gift professors and student”, Joshua White, a Vanderbilt University Professor, stated calling the situation “unprecedented”.
UNIQUE STYLE
According to legal documents related, Musk sent a text message saying that “Frankly, I hate doing mgmt stuff” to Parag Agrawal (Twitter Chief Executive) in the days leading up to making an offer.
“I don’t think anyone should have the boss of anybody,” he wrote. A second message said he could “interface better with engineers who know how to do hardcore programming” than with program managers/MBA types.
The messages are a reflection of Musk’s unique approach to running businesses, but taking control over Twitter will require managing it at least initially. Musk said that he would be taking over as CEO, but only until a new executive is found with the relevant expertise in the media business.
Donna Hitscherich from Columbia Business School said, “What’s to come is uncertain.”
Musk declined to respond to a request for comment about the challenges faced by the company in the aftermath of such a contentious transaction. Twitter declined comment.
Analysts and academics say Musk should focus his efforts on restructuring the company’s business model following a drop in revenue for the second quarter due to lower revenues and a weakening market for digital advertising.
Musk hinted that he wants to transform Twitter into an “everything application” similar to WeChat, which is wildly popular in China. It offers everything, from banking to chatting. Analysts believe that it will be difficult to do so in the United States. Consumers are already well-served by multiple services.
We don’t know yet if Musk can pull it off. Analysts and academics both agree that significant momentum and energy could be slowed by heavy turnover among Twitter staff and senior managers.
Musk spent months complaining about the company’s management. He also complained about salaries. Musk believes there are many more bot accounts than Twitter estimates.
He addressed employees directly in June and said that “rationalisation” was needed for headcounts and expenses. However, he stressed that staff should prefer to work in offices, as they are currently given a lot of freedom to choose where to work.
One thing is certain: Musk will receive a lot of attention and scrutiny as his efforts to manage Twitter are made. Experts predict that it will be a business school staple regardless of its success or failure.
Bris stated, “I’m looking forward to it all.” “So I can give this case in class.”
