NPR’s A Martinez talks to Dan Ives, tech analyst with Wedbush Securities, about Elon Musk’s actions with Twitter and what it suggests for the corporation, the business of social media and investments.
A MARTINEZ, HOST:
It has been a wild several days for Twitter and Elon Musk. The unpredictable mega-billionaire disclosed he owns 9% of the social media giant. He received a seat on the Twitter board. He even spun up a tweetstorm of tips, these kinds of as Twitter should convert its San Francisco headquarters into houses for the unhoused. Then, he deleted some of his tips and turned down membership on the board.
Dan Ives is in this article to attempt and make some perception of this Silicon Valley drama. He’s a tech analyst with Wedbush Securities. Dan, if you could, for just a moment, bounce into Elon Musk’s head and convey to us what he’s striving to do here.
DAN IVES: Yeah. Search, I consider Elon Musk was truly striving to shake up Twitter in phrases of the social media system – turned its most important shareholder, knew the board would have to discuss to him. The board invited him on. And ultimately, he was not heading to set a muzzle on and keep silent. And now this goes from a Cinderella story, with him on the board assisting Twitter, to what I would say is additional of a “Match Of Thrones” – much extra hostile. And this is likely to be a get-out-the-popcorn minute.
MARTINEZ: But it truly is really hard for me to think, Dan, that he did not know that he would get muzzled if his stake in Twitter was enhanced. I suggest, how does he not know that? It would seem like it dawned on him and then he decided, nah, I really don’t want to do this.
IVES: Yeah. And, appear, that is just how Musk in the end operates. And we have viewed it, you know, masking him for many years. And I do consider Twitter’s board thought this was heading to be, you know, him coming on to the board, supporting, cheese and crackers, voting on distinctive board – but as all people know, that – that is not Musk. And this definitely, in the long run, I imagine, hit a crescendo Saturday in phrases of his tweetstorm. And now, for Twitter and the board, it truly is the worst nightmare due to the fact when you have somebody like Musk as a foe, who’s going to turn out to be additional energetic, you know, and in the long run could, from a hostile point of view, actually attempt to improve the board – which, in the end, could guide to some type of, you know, buyout of Twitter. So this is genuinely a cleaning soap opera that continues to engage in out.
MARTINEZ: So what variety of an possibility do you think Musk sees in Twitter? Is it fiscal or is it far more personalized or a tiny of each?
IVES: I think it is additional particular. I mean, fiscal is usually not his M.O. But if you search at Twitter, Twitter’s been an underperforming social media platform. Dorsey, the CEO, has moved to the background. Buyers have been up in arms. So Musk knew there was an prospect to shake issues up, which is why it was now or never. He hit – grew to become No. 1 shareholder. And now, I feel, in terms of Twitter’s board, as very well as their execs, spotlight’s on them. Musk is not likely to go absent. And I think now this really commences to turn into a predicament that – no one ever considered in a million several years that Elon Musk would come to be a corporate raider of Twitter.
MARTINEZ: So for traders, then, is he getting sort of like a knight in shining armor for the stockholder? I suggest, is that wherever this is going?
IVES: In a Bizarro Entire world, he’s turn out to be the knight in shining armor for Twitter shareholders. And for a firm that’s underperformed, you can’t argue the success he is experienced with SpaceX, Tesla and other people. So regardless of what he touches turns to gold. Twitter now is in a scenario, strategically, that the louder Musk will get – and if they continue to underperform, they’re heading to be compelled into what I practically connect with an activist volcano problem. And that is why the stock’s moved up so much due to the fact Musk came in. Him on the board would have been, finally, a storybook ending. It really is not going to finish up like that. And which is why, you know, this is heading to be far more of a street combat concerning Musk and Twitter.
MARTINEZ: And a bit of a roller coaster trip, as effectively. Dan Ives is a tech analyst with Wedbush Securities. Dan, thanks a good deal.
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