To be able to move markets, you must be slightly intoxicated. Consider what would happen if word got out about your recent stock or token acquisition, and the value of that investment skyrocketed. Elon Musk and Twitter are one example of this. The well-known technology entrepreneur “has taken a 9.2 percent share of the company, working out to about $2.9 billion based on Friday’s share price,” according to TechCrunch this morning. As I write to you this morning, shares of Twitter are up 24.6 percent in response to Musk’s announcement that he had acquired so much of the US social network.
The Musk acquisition has given Twitter a fresh market cap of billions of dollars, making it both tougher to take over and better equipped to execute M&A now that it has more cash on hand. Hell, if the stock price rises further, it will essentially be a raise for Twitter’s employees, thereby minimizing employee churn in a tight labor market. Musk just given Twitter a fairly big present, if he doesn’t go crazy with his Twitter ownership.
But few people spend a few billion dollars on a whim – Musk’s almost 10% ownership in Twitter is likely tied to a set of objectives. He didn’t, however, opt to create his own vanity social network. Aside from TikTok, the field of new social networks appears to be a little sparse. Those that have clawed their way to market share have done it by taking a fresh approach to digital human connection rather than rehashing what has worked in the past.
TikTok became popular by focusing on short-form videos and music, similar to how Twitter became popular by using micro-posts. Instagram has a brilliant concept with its image feeds. You get my drift. Copycat success is rare, at least in recent years, especially among firms attempting to imitate a successful model. The repeated attempts to replace Twitter are a good example of this.
Do you recall Mastodon? Most likely not. Have you used Gettr, Truth Social, Parler, or Gab recently? Most likely not. Despite this, a slew of businesses are attempting to duplicate Twitter’s success. Musk had speculated about a new social network in March after making some uninformed complaints of Twitter’s current service management. Musk, on the other hand, acquired Twitter shares rather than buying something smaller or constructing something new. So, what’s next?