With a resolution looming, tech mogul Elon Musk is beginning to see that he’s bitten off more than he can chew concerning his potential takeover of Twitter.
Industry watchers say it’s a victory against the man who has spent the past several months dragging the company he wants to buy into the quagmire.
In the months following Musk’s declaration of intent, Twitter’s stock price has gone down by 26% despite an initial upward surge of 22%. Keen industry watchers also say Musk risks overpaying for the social media network if he pushes through with the purchase. The Tesla founder expects to pay around $54.20 per share – twice the current value per share of the platform’s primary rival, Meta, which holds both Facebook and Instagram.
In addition, Musk’s existing wealth has decreased considerably since April of this year. Around the time he opted to buy the social media platform, his personal worth on the Bloomberg Billionaires’ Index was pegged at $257 billion. Considering the deal has practically stagnated to the point that even he has seemed to lose interest in it, Musk’s net worth has dropped by around $30 billion.
Also, the mogul’s rather lukewarm attitude towards the deal and his disparaging behavior have impacted the platform’s operations. Indeed, if Twitter actually ends up in Musk’s hands, it will be significantly less attractive to investors as key executives have left the company. Moreover, key initiatives have been left hanging since the sale was announced.
Will He or Won’t He?
Musk’s “will he / won’t he” attitude also lowered morale among Twitter employees.
According to one management analyst, people have taken to worrying about the company’s ownership. This has affected the quality of their work. Employees also expressed concerns regarding job retention, as well as benefits for their families and the potential impact of getting laid off if or when Musk actually pushes through with the deal.
As a result, business development teams are at a loss, and any form of long-term planning for improvements to the platform has drawn to a halt.
Since June, hundreds of Twitter employees have already resigned. The company has also paused the hiring of new employees and has also laid off several personnel in light of Musk’s impending purchase.
Indeed, one of the more damning pieces of evidence Twitter has thrown at its potential buyer is documented pressure from him to cut costs by substantially decreasing its workforce, claiming that the company needed it to have a healthier financial profile.