Elon Musk’s Twitter Acquisition Puts a Dollar Value on Each User = $152 Per Active User

In a professional financial manner, it can be stated that Elon Musk's acquisition of Twitter puts a dollar value on each user within the social media platform. This could potentially have implications for future acquisitions and valuations within the industry.

iShook Opinion

Oct 28, 2022 - 08:23

Oct 28, 2022 - 08:52

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Elon Musk’s Twitter Acquisition Puts a Dollar Value on Each User = $152 Per Active User

Elon Musk's recent acquisition of Twitter puts a dollar value on each user within the social media platform. This could potentially have implications for future acquisitions and valuations within the industry.

Musk closed his $44 billion deal to buy the social media service on Thursday night, said three people with knowledge of the situation. He also began cleaning house, with at least four top Twitter executives — including the chief executive and chief financial officer — getting fired on Thursday. Musk had arrived at Twitter’s San Francisco headquarters on Wednesday and met with engineers and ad executives.

By putting a dollar value on each Twitter user, Musk has set a precedent that could influence future acquisitions and valuations within the social media industry. This move could also have implications for other industries where user data is a key asset. It will be interesting to see how this plays out in the coming months and years.

In July 2022, Twitter released its earnings report for the second quarter of the year. The report showed that the social media platform had a total of 238 million monetisable daily active users around the world. This figure represents a significant increase from the 191 million daily active users that Twitter had in the same quarter last year.

According to a Refinitiv survey of analysts, the company lost 8 cents per share, adjusted. This is compared to expected earnings of 14 cents. Revenue also came in below expectations at $1.18 billion vs $1.32 billion.

Twitter first Quarter Earnings, Twitter Second Quarter Earnings.

Though Elon Musk has paid 152 dollars per active user in taking the company private, this move provides him with capital to infuse Tesla and SpaceX with a strong bank account. Now that Twitter is private, Elon Musk does not really need to answer to SEC regulators. This move allows Musk more freedom to do what he wants. Because of this, Elon Musk has made the smartest move of the century.