Introduction
The New York Times published the news on October 4, 2022, that Elon Musk had agreed to accept Twitter’s initial offer for its stock price. According to the source, the purchase price is $54.2 per share, and the deal’s total value exceeds $40 billion (Conger et al., 2022). The article discusses the processes of sharing information about the deal, particularly the course of Twitter’s lawsuits against Elon Musk, who rejected the deal. Arguments from the billionaire’s side are cited: the social network’s initial cost was not justified because of its limited ability to control spam and fake users. In addition, Musk, according to The New York Times, is concerned that such a deal move is not going in his favor, despite the stated proceeds from investors and bank lending assistance (Conger et al., 2022). Finally, the paper highlights Twitter’s relevance to the political and economic environment because it is a mouthpiece for public opinion.
Key Concepts: SWOT Analysis
Strengths. Evaluating the winning points of Twitter’s behavior, the company’s adherence to the legal terms of transactions should be highlighted. In addition, the company is still in a winning position in selling and retaining the rights to the social network (Conger et al., 2022). The stock’s value and relevance also remain high because the economic and legal terms of the deal fuel public interest in the conflict.
Weakness. Twitter has a high chance that employees and administration will be cut off from any access to the content if the deal goes through. They are irrational to continue to speak negatively about Elon Musk and use abusive rhetoric, because it confirms his position about the flawed system of adding users to the blacklist. Finally, the company really does not have practical tools to track spam.
Opportunities. For Twitter, the sale of the social network is an opportunity to manage the company’s shares, a share of which can be obtained after the transfer of rights. The Donald Trump situation will be forgotten or lessened as the new owner will change the free speech policy (Conger et al., 2022). The company will be able to overcome its low ROI through additional investment by Elon Musk.
Threats. There is a substantial threat that Twitter’s lawsuit against Elon Musk will not only be dismissed but could also be used against them. If the deal is not made, Twitter’s stock could fall, and the number of users would drop, as free speech is lacking on social networks (Conger et al., 2022). There is the possibility of a reverse claim from Elon Musk to recover any damages or claims to sell a portion of the stock.
Conclusion
I believe that Twitter should reconsider its tactics regarding legal proceedings. In all my time using the social networking site, I have not encountered many cases where removing users was rational. Instead, I have encountered Twitter repeatedly banning people who have expressed opinions during discussions on ethical dilemmas: such as abortion. I believe that Twitter currently lacks algorithms to check users’ statements for the possibility of actual harm (for example, in the context of violence in Ukraine or police brutality in the U.S.). The company could gain more winning points if it invested and transformed its security and expression rights policies rather than filing lawsuits for backing out of the deal. Nevertheless, despite Twitter’s imperfections, I do not fully agree with Elon Musk’s policy, but I believe his right to refuse a deal has been violated.
Reference
Conger, K., Hirsch, L., & Sorkin, R. (2022). Elon Musk suggests buying Twitter at his original price. The New York Times. Web.