If Elon Musk is to take over the Twitter TWTR later this week, Tesla TSLA SpaceX, and The Boring Company may get a little less love from the fearless leader Elon Musk.
If this deal happens, I think Musk needs to figure out the top-level, C-level exec team they need to have in place, and I think it's fair to say that he's going to be a little too distracted with probably putting more time behind Twitter and putting less time behind other things. Musk filed a letter in Delaware Chancery Court on Tuesday seeking to proceed with the $44 billion Twitter deal on its original terms. The reversal came after Musk was expected to be deposed by Twitter's lawyers in the company's lawsuit, which sought to enforce the buyout contract after the provocative entrepreneur pulled out of the deal in July.
Now, the world's richest person is in danger of inheriting a company that is damaged in part because of his own doing.
Musk has slammed Twitter's business for months because it didn't reveal enough information about the number of fake accounts on the platform. Musk and Twitter CEO Agrawal were worried that employees would leave the social media platform after they threw themselves out of the game.
Musk will likely have to install an entirely new management team and new engineers to support his super-app ambitions, address the downtrodden culture at Twitter, and lay off workers. It's not clear how far Musk will go in his changes to Twitter.
At a minimum, governing Twitter will require a great deal of Musk's attention in the coming months, if not a full-on headache.
The Tesla CEO is going to have to figure out how to make steady money from a platform that has hemorrhaged losses and cash for years. That is the toughest problem for Musk to fix.
Kulkarni said that Twitter has been a case study in how a great company could have problems with business fundamentals and not figuring out the exact go-to market strategy, not figuring out the exact disclosure strategy. You can follow Sozzi on Twitter and LinkedIn.