Special to USAfrica magazine and USAfricaonline.com, first African-owned, U.S-based newspaper published on the internet
By Ken Okorie, an attorney is an Editorial Board member of USAfirca
From the most popular electric car, Tesla, to Space-X, Elon Musk has shown a rare capacity to blaze trails. He is untraditional, certainly unusual. His ventures are atypically daring, his accomplishments spectacular. But none has presented the curiosity or been as confusing as his Twitter encounter. Twitter is increasingly and rapidly exposing seemingly erratic aspects and tendencies of the world’s richest man. Eyebrows are rising with questions from a curious public about Elon’s profile as a disciplined entrepreneur.
Words that have described the accomplished pioneer include ambitious, fast-paced, critical, rational, principled, and judicial and efficient, with a desire for justice and equality; he is said to be motivated by a strong sense of right and wrong, and tends to be confident, analytical, and ambitious.
Several of his recent actions and decisions raise genuine questions as to each of these glowing descriptions.
His $44 billion tag paid for the blue bird, Twitter, has generally been deemed to be on a pricey side. And it is not just the price. The Twitter purchase has been a rocky path of unusual drama and hiccups, most generated by Mr. Musk himself
Musk accused the previous Twitter owner of misrepresenting the Social Media platform’s subscription levels. It is a question that should never arise because elementary economics or other basic business principles recognize subscription as the primary value indicator for the line of business Twitter is engaged. So, why did it become an issue for Elon after he already paid for the Blue Bird? Upon that consideration, he tried to back out of the deal.
Subsequent developments suggest that Elon himself may have misrepresented his reason for wanting out. It appears it was his first point appreciating the import of the most vital data for valuation purposes.
Twitter owners and investors saw Elon’s offer as value that was vastly out of sync with market. They insisted that Elon must buy. Twitter shareholders called Elon’s bluff and a court intervention forced him to go through with the deal.
He relied not only on his vast wealth for the purchase; he borrowed. Debt is real, including for the world’s richest man. It must be repaid. This is reality that should not have become important after Elon already wrote the check. But it appears that way.
Prior to reaching this point, Elon’s own words had started inviting curiosity. His seeming to mix politics into the business deal lacked polish or sound advised. His early indication that he would restore expelled Donald Trump generated questions about his true motivation for desiring Twitter.
He further presented the appearance that he only began focusing on the value component of his deal post–closing. If true, as subsequent developments seem to confirm, it was strategically too late.
Hours after Twitter was his, Elon began costly house cleaning and operational adjustments that seemed to not consider their implications for the future of Twitter. From attempting to authenticate subscribers, firing estimated half of the Twitter workforce, to cancelling remote work made very popular by the pandemic across industries, Elon made drastic changes that have shaken up Twitter to the point its very survival is now being questioned.
As though not enough, Elon followed with more bizarre steps. His ultimatum requiring Twitter staff to commit to “hardcore work” or leave further devastated any appearance of stability. In hours, an estimated 50% of remaining staff called Elon’s bluff and left. Included in the mass exodus are engineers and techies who make Twitter work. Elon was reportedly personally begging for people that can code. The very inability of Twitter to perform is now actively debated, some experts betting against the company surviving.
These have resulted from Elon’s flip flops and poor decisions that have shaken the confidence of staff and advertisers alike. One word best describes news and speculations coming out of Twitter: chaos!
Streaming so quickly, these developments must give Elon sleepless moments. Even a mega billionaire can only absorb so much in so short a time. Today’s announced reinstatement of Trump is deeper foraging into the political arena; it’s difficult to see how Mr. Musk is well served.
Of acute curiosity is what compass guides Mr. Musk’s actions? Without a doubt, America offers opportunity unlike any other country. That a is what catapulted Elon. But America also holds its laws above all else and will not hesitate to clip Elon’s wings should he attempt to soar beyond legal boundaries. Even the richest of the wealthy will have a tough time should his current circumstances become more challenging.
USAfrica: With $290 Billion, Tesla and SpaceX, it’s Elon Musk’s world. By Chido Nwangwu
