Twitter owner Elon Musk has called his purchase of the company a poor financial decision, saying his "timing was terrible" for buying the company. In recent statements, Musk has sent mixed signals about Twitter's financial health, including predicting that it could become the most valuable company in the world and publicly telling staff the company was on a path to bankruptcy without a significant increase in subscription-based revenue.
Musk made his offer to buy Twitter during a historic downturn for tech companies when the Nasdaq 100 Technology Sector lost nearly 30% of its value between the time he made an offer and shortly before closing the deal in October. He bought Twitter for $44 billion last year and is currently reevaluating if it was financially sound enough to be worth such investment.
"I revalued the company at less than half of what I paid," said Musk, who estimates his net worth at $189.2 billion due to substantial stakes he owns in companies like Tesla and SpaceX. Stock grants to employees were based on a reduced valuation of $20 billion after reassessment.
Particularly concerning was advertisers' exodus from Twitter following Elon Musk's takeover; half of its top 100 advertisers reportedly left as they disagreed with him or faced threats of legal action over critical coverage.
In addition to these challenges, Musk announced plans on Thursday to strip blue checkmarks from "legacy verified" accounts as part of an apparent attempt to pressure legacy users into paying for their verification status. This controversial move further highlights internal concerns about increasing subscription-based revenue streams.
Despite these issues, Elon Musk remains ambitious about turning around Twitter's fortunes. The entrepreneur shared plans regarding building what he calls "maximum truth-seeking AI," designed with understanding nature and objective reality as its ultimate goal—an initiative that may have long-term implications for social media platforms but faces uncertainties given current struggles facing this once-prominent platform.
As Twitter continues to navigate these challenges under Musk's ownership, it remains to be seen whether the company can regain its former prominence as a leader in social media and technology. For now, Elon Musk's public expression of regret suggests that he may continue to face obstacles in his quest for success with this high-profile acquisition.