Elon Musks' Secret 'Plan B': Will Musk acquire Twitter? Predictions...
Updated: Apr 25, 2022
Elon is about to get even wealthier thanks to his latest venture into social media. Here's how it'll happen...(scroll down)
In a very recent interview with TED talks, the richest man in the world, Elon Musk, was asked about his offer to buy Twitter. According to Musk, if the deal goes through, despite taking the company private, he would maintain a large number of shareholders, and would simply make [much of the] source code of the company publicly available, in an effort to prevent unfair and illegal censorship.
Just on the news of Musk acquiring a majority share in the company (9.2%, to be exact), its share price jumped 22%, after dropping over 50% from its all time high of $77.06 in February of 2021. Good news indeed for key investors, many of whom are praying for Musk to take over the company. Others, however, are doing their best to block Musk from a takeover, which would most certainly result in a dramatic change for the social media platform.
With this in mind, Musk mentioned that he does have a "Plan B" if his offer to purchase the company falls through. However, I would have to say, that Musk's "Plan A", its about to make him even richer than he was prior to stepping into the Twitter fray, but those riches could all be lost a few years out.
Here's what's coming:
#1: I don't believe that Musk will acquire Twitter in the short-term, but it is possible that it can be done within 2-3 years <<correction: 'months'>> timeframe. Please note that I doubt whether Musk would take the company "private" in the short-run as I see it continuing to be publicly traded until at least May/June of 2023, at which point, the price will soar on anticipation of the share buybacks.
#2: It may appear that talks between Musk and the company have fallen through about 3 months out, and the share prices will drop. However, Musk is both patient and persistent, and he will ultimately get his way!
#3: Twitter's price should rebound by October, and after that, we should see some volatility, followed by a peak in price by mid-2023, as mentioned above. What is very clear to me is that Musk will receive loads of public/private investment in Twitter, making him even wealthier than he his now!
#4: Musk will remain connected to the company up until it is taken private. From there, he will mostly remain in the background, letting the revitalized company to run itself.
#5: Musk's "Plan B" is to acquire a smaller social media entity, but that looks like it just won't happen given the overwhelming probability of him taking over Twitter in the manner that he desires.
I suspect that his key interest in Twitter is not to return it to a 'free speech' platform, but rather, to integrate cryptocurrency into its revenue model, which will be difficult (if not impossible) given the regulatory issues that he will face. It is this move (or something similar), that will occur about six (6) years out from now, that will cause Musk to lose a great deal of money on this investment. However, by that time, his automotive endeavors should skyrocket, and we should finally see a line of affordable electric cars (not the $1,500+ per month car payments that the company's current vehicles cost consumers).