https://sputnikglobe.com/20221024/twitter-musk-takeover-saga-reportedly-taking-toll-on-platforms-business--staff-morale-1102586231.html
Twitter-Musk Takeover Saga Reportedly Taking Toll on Platform's Business & Staff Morale
Twitter-Musk Takeover Saga Reportedly Taking Toll on Platform's Business & Staff Morale
Sputnik International
Elon Musk first offered to buy Twitter on April 14, but backed out of the purchase worth a total of $44 billion, alleging that the social media company had... 24.10.2022, Sputnik International
2022-10-24T14:57+0000
2022-10-24T14:57+0000
2023-04-14T12:57+0000
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With Elon Musk reportedly poised to finalize his deal and purchase Twitter for $44 billion before the expiration of the court deadline on October 28, the social media company is under increasing pressure, Axios reported, citing Twitter insiders.The drawn-out and dramatic takeover saga has taken its toll, making it tough to carry on with business as usual, according to insiders cited by the outlet. Discussing long-term deals with clients and vendors has become particularly challenging amid the "uncertainty," Twitter employees said, adding:Furthermore, staff morale has also ostensibly taken a hit after a recent report from The Washington Post suggested Elon Musk planned to slash up to 75 percent of the company's workforce.After years of corporate turnover, Twitter was described as having become a place where "there is a lack of investment in consistent leadership," Leslie Miley, a former engineering manager, said in the latest podcast episode of "How it Happened: Elon Musk vs Twitter." Miley added:"The organization has probably damaged its ability to become a more refined product."As roughly 85 percent of Twitter’s advertising business heavily relies on brand ads – more than almost any other social media platform – the current situation in the economy is likely wreaking havoc on its ads trade, insiders suggested. They added that while the company still hasn't confirmed whether it will publish an earnings report for the third quarter, its current share price is unlikely to reflect the true challenges the social media giant is facing. Amid the volatility, the tech company has attempted to diversify its revenue in recent months with subscriptions, the report added. However, products like Twitter Blue and Super Follows have failed to gain significant traction.While Twitter maintains that its user base has continued to grow this year, the company's rivals are growing much faster. Twitter currently has an average of 237.8 million daily active users, while Snapchat has 363 million.This comes as the world’s richest man has until October 28 to close his $44 billion acquisition of Twitter or face a legal battle in Delaware Chancery Court next month. The Tesla chief executive signed the original takeover deal on April 14, but backed out in July, accusing the social media company of purposely understating its fake and spam accounts. Twitter sued Musk in July to force him to go through with the purchase. However, in a bid to dodge the legal acrimony, Musk then performed a U-turn and re-committed to buying Twitter at $54.20 per share, according to regulatory filings made public on October 4.
https://sputnikglobe.com/20221020/pretty-penny-elon-musk-notes-he-is-obviously-overpaying-for-twitter-but-hopes-deal-is-worth-it-1102441487.html
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Twitter-Musk Takeover Saga Reportedly Taking Toll on Platform's Business & Staff Morale
14:57 GMT 24.10.2022 (Updated: 12:57 GMT 14.04.2023) Elon Musk first offered to buy Twitter on April 14, but backed out of the purchase worth a total of $44 billion, alleging that the social media company had deliberately understated its fake and spam accounts. Twitter sued the tech billionaire in July for failing to honor his obligations under the merger agreement.
With
Elon Musk reportedly poised to finalize his deal and purchase Twitter for $44 billion before the expiration of the court deadline on October 28, the social media company is under increasing pressure, Axios reported, citing Twitter insiders.
The drawn-out and dramatic
takeover saga has taken its toll, making it tough to carry on with business as usual, according to insiders cited by the outlet. Discussing long-term deals with clients and vendors has become particularly challenging amid the "uncertainty," Twitter employees said, adding:
"People are just exhausted. It can be conflicting because as a shareholder you’re happy but as an employee, there's a lot of uncertainty.”
20 October 2022, 09:01 GMT
Furthermore, staff morale has also ostensibly taken a hit after a recent report from The Washington Post suggested Elon Musk planned
to slash up to 75 percent of the company's workforce.
After years of corporate turnover, Twitter was described as having become a place where "there is a lack of investment in consistent leadership," Leslie Miley, a former engineering manager, said in the latest podcast episode of "How it Happened: Elon Musk vs Twitter." Miley added:
"The organization has probably damaged its ability to become a more refined product."
As roughly 85 percent of Twitter’s advertising business heavily relies on brand ads – more than almost any other social media platform – the current situation in the economy is likely wreaking havoc on its ads trade, insiders suggested. They added that while the company still hasn't confirmed whether it will publish an earnings report for the third quarter, its current share price is unlikely to reflect the true challenges the social media giant is facing.
Amid the volatility, the tech company has attempted to diversify its revenue in recent months with subscriptions, the report added. However, products like Twitter Blue and Super Follows have failed to gain significant traction.
While Twitter maintains that its user base has continued to grow this year, the company's rivals are growing much faster. Twitter currently has an average of 237.8 million daily active users, while Snapchat has 363 million.
This comes as the world’s richest man has until October 28 to close his $44 billion acquisition of Twitter or face a legal battle in Delaware Chancery Court next month. The Tesla chief executive signed the original takeover deal on April 14, but backed out in July, accusing the social media company of purposely understating its fake and spam accounts.
Twitter sued Musk in July to force him to go through with
the purchase. However, in a bid to dodge the legal acrimony, Musk then performed a U-turn and re-committed to buying Twitter at $54.20 per share, according to regulatory filings made public on October 4.
