On with Kara Swisher Twitter Spaces On: Elon, Elon, Elon … and Trump
Oct 19, 2022
In a lively discussion, William Cohan, journalist and founding partner of Puck, and Scott Galloway, business professor and co-host of Pivot, dissect the impact of Elon Musk's controversial Twitter acquisition. They delve into the financial fallout and challenges of free speech amid instability. With critical insights on Tesla and SpaceX, they debate Musk's evolving public perception. The conversation also touches on the potential return of Trump to Twitter and the broader implications of celebrity ownership in social media.
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Elon's Twitter Deal: A Financial Mindfuck
- Elon Musk's Twitter deal involves $13 billion in debt financing on a $44 billion purchase.
- This debt may be issued at a discount, signaling low confidence in the deal's success.
Potential Improvements for Twitter
- Beyond free speech, Twitter could improve by implementing a subscription model, stronger identity verification, and integrating payments.
- These changes could help recover some of the value lost after Musk's acquisition.
Debt and Cash Flow Concerns
- Twitter's $13 billion debt carries significant interest payments, exceeding its cash flow.
- Musk might need to request additional funds from investors to avoid default.