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Since Monday 25 in April it is news that Elon Musk reached an agreement to acquire the entire Twitter company, the social network of the little blue bird. The purchase was for a millionaire amount of $06,000 millions of dollars, but now the great unknown is: what is really expected now, will it be “the billionaire’s new toy or will improvements really be seen on the platform”
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An expert in digital marketing and social networks, Ismael El-Qudsi, spoke exclusively with Real America News and tells us what the expectations are in the sector. What does this change bring to the network of the little blue bird.
To begin with, is they expect improvements in the reputation of the tool since in recent years it has not done very well nor in terms of followers, nor financially . But considering that now the sole owner is one of the “most innovative people in the world”, good things can be expected, says El-Qudsi.
“I don’t think Musk bought Twitter just to make it private and that’s it. The question is whether he really wants to become a social media or media mogul. That is the great doubt of the sector”
Isamel El-Qudsi, CEO of InternetRepública.com and Socialpubli
The first thing that should be clear is that Twitter, once the purchase becomes effective, will no longer be listed on the stock exchange and will become a private organization. This may happen by the end of the year.
This is the richest man in the world who has bought, not a media outlet, but the digital space with more diffusion power. “What Musk has bought is an influence”, assures EL-Qudsi.
How will Twitter be financed once it passes into the hands of Musk
That is the great unknown that exists among the experts, Also, Twitter is currently a money losing company. Its ad revenue is around $5,04 million dollars, but it is said that Elon Musk does not like online advertising, so How is Twitter going to be maintained?
It is believed, due to rumors, that Elon Musk is going to eliminate advertising on the platform, “but that would be losing a lot of money,” says Ismael El-Qudsi. It should be noted that before Musk’s offer to acquire the 100% of the company, Twitter’s revenue goal by the end of 2023, was $7,100 million dollars.
There has been some speculation about the implementation of a subscription, and we asked the expert in digital marketing, who considers it unlikely: “First you have to improve the product, which right now is in the doldrums.”
Statistics indicate that “many people are leaving Twitter and young people are not interested in that platform,” says El- Qudsi. Twitter does not even enter the first 10 most famous social media platforms in the world, is number 17 in a list of 25.
Therefore, on the Future financing of Twitter There are still many questions, the most important is whether Musk really “can make it profitable in the short term”, even if he decides to get rid of advertising.
Elon Musk, sought financing to make the total purchase of Twitter just a few weeks ago and after it was announced that he had acquired 9.2% of the platform. The CEO of Tesla managed to get at least 54% of the takeover bid to buy the platform, it will be financed with loans from major banks.