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Twitter shares rise on reports it will accept Musk takeover bid

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Musk dodges limits in Twitter board seat refusal: experts

Elon Musk. — © AFP Indranil MUKHERJEE

Twitter shares rose Monday following reports the company is poised to accept Elon Musk’s takeover offer, a dramatic shift after the board organized a “poison pill” to ward off the billionaire entrepreneur’s hostile buyout bid.

The deal, which media outlets including The Wall Street Journal and The New York Times reported could be announced later in the day, would put the Tesla boss in charge of the influential social media site perhaps best known for serving as a megaphone for former US president Donald Trump.

Representatives of Twitter and Musk worked through Sunday night to hammer out the deal, which could still fall apart, according to the reports.

There was no immediate comment from Twitter.

Twitter CEO Parag Agrawal and Musk were likewise quiet, although both had used the site to post updates about the deal.

Musk took a major stake in the firm earlier this month before making a formal purchase offer.

“I think at this point, a deal seems, based on the glide path, to get done,” Dane Ives, senior equity analyst at Wedbush Securities, said in an interview on CNBC.

Musk last week lined up around $46.5 billion in financing to make the purchase happen, and Ives said, “The board couldn’t find a white knight, a second bidder. This basically put (their) back against the wall, they had to come to the negotiation table.”

Around 1435 GMT, Twitter shares were up 3.2 percent.

– ‘Poison pill’ defense –

Musk launched his $43 billion hostile takeover bid for the company, casting it as a promotion of freedom of speech.

While the firm’s board initially said it was reviewing the offer, it later rebuffed him and adopted a “poison pill” plan that would make it harder for Musk to acquire a controlling stake.

That defense kicks in if an investor buys more than 15 percent in shares without the directors’ agreement. Musk holds nine percent.

Last week, Musk — considered the world’s richest man due to the explosive popularity of Tesla electric vehicles as well as other ventures — said he had lined up financing for the deal and was “exploring” a direct tender offer to shareholders, a maneuver that would circumvent the company’s board.

Despite Musk’s great wealth, the question of financing had been seen as a potential stumbling block because much of his holdings are in Tesla shares rather than cash.

In a filing, Musk pointed to a $13 billion debt facility from a financing consortium led by Morgan Stanley, a separate $12.5 billion margin loan from the same bank, as well as $21 billion from his personal fortune as being behind the deal.

Musk’s efforts have raised hopes about the commercial potential of Twitter, which has struggled to achieve profitable growth despite its influential spot in culture and politics.

But the polarizing Tesla CEO’s campaign also has sparked concern among technology and free-speech experts who point to Musk’s unpredictable statements and history of bullying critics, which contradict his stated aims.

Under Agrawal, who took over as Twitter CEO late last year, the company has made progress on new monetization features, such as subscription products, said a note from Truist Securities, adding that “short-term, Musk’s involvement at this stage runs the risk of disrupting those efforts.”


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Internal Documents Reveal That the New Twitter Blue Has Fewer Than 300k Subscribers at Present

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Internal Documents Reveal That the New Twitter Blue Has Fewer Than 300k Subscribers at Present

Look, I know people have strong opinions about Elon Musk, and I realize that any criticism is going to be viewed as political commentary, even if it’s not (because I’m not American, I can’t vote, I don’t care about Hunter Biden, etc.). But Elon’s paid verification program is dumb, the dumbest move that he’s made at Twitter to date.

And I understand the logic – Elon says that when he came on, the company was losing $4 million per day, which lead to mass lay-offs, and a scramble for revenue generation options.

Paid verification, then, makes sense, while Elon also extrapolated the need for immediate cash into a pathway to combat bots, by using verification as a means to ‘verify all the real humans’ – i.e. bots won’t pay, and bot peddlers won’t be able to afford such at scale.

I get all the moving parts, and optimistically, they may sense.

But realistically, which is the more important ‘ally’ of the two, it just doesn’t.

Because most people won’t pay, especially when you’re offering nothing much in return, other than a graphic of a tick next to their username, while the very act of selling verification ticks erases their only perceptual value, that being exclusivity.

Now, everyone can buy one, so the tick is meaningless, at least as a status marker of some form.

My perspective on this been vindicated, at this early stage at least, by a new report from The Information, which says that, according to internal documents:

Around 180,000 people in the US were paying for subscriptions to Twitter, including Twitter Blue, as of mid-January, or less than 0.2% of monthly active users […] The U.S. number is about 62% of Twitter’s global subscriber total, the document says, which implies Twitter has 290,000 global subscribers.”

That’s consistent with the findings of researcher Travis Brown, who’s been posting regular updates on Twitter Blue subscriber numbers, based on searches of users that show up as ‘blue_verified’ in the back-end.

At present, based on Brown’s figures, the new Twitter Blue program looks to have around 300,000 subscribers, very close to the data The Information has seen.

That would mean that Twitter’s currently bringing in an extra $2.4 million per month via the program, or $7.2 million per quarter. Which is pretty good, that’s extra income at a time when Twitter desperately needs it. But it’s still way, way off from where Twitter wants its subscription revenue intake to be.

To reiterate, when initially outlining his Twitter 2.0 reformation plans, Elon said that he wants to make subscription revenue around 50% of Twitter’s overall intake. That would align somewhat with the aforementioned revenue and bot-battling potential – but in order to do this, Twitter needs to increase Twitter Blue take-up 81x its current state.

300k sign-ups is also only 0.12% of Twitter’s active user base – so to reiterate, revenue-wise, it’s not close to meeting goals, and as a bot disincentive, it’s nowhere near meeting its aims. And while Twitter has just this weekend rolled out Twitter Blue to more regions, there’s just no way that it’s ever going to reach the levels required to make it a viable consideration in either respect.

Which means that all the mucking around, all the impersonation issues, all the gold checks and gray ticks and square profile images and brand logos. All of this has, on balance, been a waste of time.

It’s not nothing – again, Twitter needs all the extra money it can get right now, and a $29 million annual boost in intake will help. But functionally, it’s been a series of blunders and missteps, one after the other.

And now, Twitter wants brands to pay $1,000 a month for a gold tick?

Yeah, safe to say that’s not going to be a roaring success either. And while Twitter will likely get a few more Twitter Blue sign-ups when it removes legacy blue checks sometime in future, that’s still only 420k extra subscribers, max.

The churn rate will also be high – because again, a blue tick isn’t valuable anymore if everyone can buy one – and unless Elon and Co. have some magic updates to build into Twitter Blue in future, beyond Blue-only polls or paying to qualify for monetization, I don’t see how this becomes a significant element of Twitter’s overall intake or process.

But maybe I’m missing something. Maybe, because it’s Elon Musk, we’ve missed the point, or the process, and there is actually another pathway to winning on this front that’s not been revealed as yet.

I don’t see it, but I can’t imagine the logistics of flying to Mars either, so maybe there’s more to come.

But I doubt it.



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Housebound Jordanian football fan a social media star

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Amer Abu Nawas was born with osteogenesis, or brittle bone disease, a genetic condition hindering normal bone growth that has meant he rarely leaves his home

Amer Abu Nawas was born with osteogenesis, or brittle bone disease, a genetic condition hindering normal bone growth that has meant he rarely leaves his home – Copyright AFP Khalil MAZRAAWI

Kamal Taha

Having spent most of his life housebound due to a medical condition, Jordanian Amer Abu Nawas’s love of football has propelled him to social media stardom.

Offering analysis of matches from the leading European football leagues to almost a quarter of a million followers, his Facebook page — “HouseAnalyzer” in Arabic — has grown into what he describes as a “big family”.

The 27-year-old was born with osteogenesis, or brittle bone disease, a genetic condition hindering normal bone growth that has meant he rarely leaves his home in Zarqa, 30 kilometres (18 miles) from Jordan’s capital Amman.

“It is true that I have never played football in my life, and have never attended any match, but for me football is everything,” Abu Nawas told AFP.

With no schools in the country catering to his needs, Abu Nawas grew up spending much of his time watching football matches, analysing the teams and playing football video games.

“This always made me feel like it is taking me from this world to a different one,” he said.

His relatives noticed his passion and encouraged him to publish his match analyses online.

In 2017, he launched his Facebook account, which now counts more than 243,000 followers.

– ‘Reach people’ –

Filmed on a phone in his bedroom, Abu Nawas’s videos usually feature him wearing a football jersey, excitedly commenting on matches and news from the world of football.

Discussing leagues from England, France, Germany, Italy and Spain, he sometimes uses a football pitch-shaped board to explain tactical nuances.

One of Abu Nawas’s latest videos reached more than 1.4 million viewers and he has started posting on YouTube, TikTok, Instagram and Twitter.

He said he was grateful for modern technology allowing him to connect with so many people.

“From this room, from this small place isolated from the world, I was able to cross these walls, reach people, communicate with them, create content, and become what I am today,” he said.

He expressed sadness at sometimes seeing people attack each other in comments to his posts, and said his relationship with his followers was “like a family”.

“This family is growing day by day, and I hope it will reach as many followers as possible,” he added.

Abu Nawas’s own family do their best to provide him with a comfortable life.

He is the youngest of three brothers and his father is a doctor and his mother a pharmacist.

Inside his room are shelves with a PlayStation, a computer and plastic baskets keeping items he might need.

On his bed are phones, remote controls, headphones and a long stick used to reach distant items.

– ‘Not an obstacle’ –

“He has his own world, in a room with a temperature of 27 degrees to avoid cold and pneumonia. He can operate anything using the remote control,” his father Yussef told AFP.

He said his son has friends who occasionally visit.

“When he feels bad, they take him out for a tour in a minibus,” he said.

Abu Nawas lamented that in Jordan “nobody cares” about people with diseases like his, and said he wished he had had the opportunity to attend school.

“The conditions for people with special needs are catastrophic,” he said.

“I could not learn because there are no special schools for people like me.”

Last year, the organisers of the football World Cup invited him to attend the tournament in Qatar.

But due to travel difficulties linked to his condition, he arrived late and missed the matches he was scheduled to attend.

Even so, Abu Nawas said it was “the best 10 days of my life”.

“I know my condition, I learned to be content, and I will remain so,” he said.

“Disability need not be an obstacle to success.”

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Stand Out in a Crowded Market By Focusing on Organic Growth

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Stand Out in a Crowded Market By Focusing on Organic Growth

Opinions expressed by Entrepreneur contributors are their own.

My partner and I have seen the power of organic growth, even in a significantly competitive market like fashion. Our company, named BJ Positive Wear, was able to create something captivating to our customers within the last two years. I saw a complete transformation of our business in that time, all due to organic growth and the philosophies that we used to succeed.

Even though we had no idea what to expect, we decided from the very start to go in with organic growth being the ultimate goal. We did not benefit from outside help, so we chose to do this. We knew it would take longer, but in the end, every action brought us one step closer to where we are today.

I believe everybody could benefit from focusing on organic growth in a competitive market. If you’re unsure where to start, I will share with you what we did to achieve our success today.

Related: How Thinking Like a Designer Can Unlock Organic Growth

Why organic growth matters

You might not think much of it, but organic growth is the ultimate powerhouse for success. Organic growth is an important area of focus because it encompasses various areas of outreach and focuses on genuinely connecting with the audience you want to reach with your business.

Back in the days before the internet, organic growth was increasingly difficult. People had to do traditional marketing, create posters, billboards and more. Today, my partner goes on social media and shares content.

Social media has so much power, and many people I see and talk to in the business world don’t even grasp the full potential of it. For our firm, social media was what ultimately made us powerful and gave us the organic growth we wanted. You can have the same, and it comes with a few specific steps that we took as we embarked on our journey to success.

Create conversation

One of the essential tips is to create conversation. Organic growth is about engaging with the audience and making them feel a part of what you are doing. Your customer is the ultimate source of direction as a business. Even if you start with an idea for a specific product, you need to listen to the customer and see if what you have to offer is going to benefit them or not.

Create these conversations, and focus on what they say. Even if it is entirely different than what you might have expected, your customer is the ultimate tool for you to spearhead any decision to allow you to further expand and experience growth as a business.

Present value and transparency

Transparency is one of the most valuable tools in any business. If you want to succeed and capture any audience demographic’s attention, you need clarity in your messaging. You must lay out the value for your specific product or service to the audience. Customers like honesty. This is something that I have come to appreciate as a co-founder.

People want to hear exactly what you have to offer. So, don’t leave a mystery. Instead, present your value and be transparent in your messaging. This is what ultimately creates organic growth, but it also leads to another essential aspect of how we were able to achieve our success.

Related: How Transparency In Business Leads to Customer Growth and Loyalty

Differentiate and remain competitive

One of the ultimate tools people often do not tap into is the potential for every social media user today to understand their competition. Everything is publicly available, and there are no surprises. If you find yourself in a position where you are genuinely struggling to remain competitive, point out where you think you can defeat your competition.

When we were focusing on creating our clothing business, we wanted to create something meaningful. Additionally, we wanted to create something that would ultimately stand out compared with every other company we’d seen in the industry. This eventually led me to differentiate and focus on innovating what was already in our market. If you want to succeed, take it from us: You need to determine and figure out what your competitor offers that you can beat and defeat.

Organic growth accelerates when you become a creator

Organic growth is ultimately the most meaningful because it allows you to create conversation and value while remaining competitive with your competition. But there’s something else that many people often forget.

There are multiple kinds of organic growth facilitators in this world. Some people stick to diversification, while others focus on offering something of value that is a necessary product to people. Finally, some people, like our business and myself, become creators.

Why creators stand out and defeat the competition

You can choose any path you’d like to accelerate organic growth, but ultimately, I see the most value in becoming a creator. As a creator, our business built something that truly did stand out compared to other competitors. We focused on innovation first, then differentiated and ensured that there would be immense value offered in whatever we did in the industry. As a startup, I can offer you so much advice, but this is ultimately one of the most important: If you want to see success, inspire people, and become a creator of your own.

You have the power to create value

Creators are essential and stand out because we build value with our products. We value each service we offer, and new business models will be created. We create a massive following and see our company take off in ways we never thought possible. Organic growth accelerates when you are a creator, and this is because you find a way to inspire people.

Be an underdog and stand out

People like a success story. Everybody wants to root for the underdog, and quite honestly, my business was the underdog, but we were also extreme innovators in what we were able to do. If you want to see success in the industry you are part of, then I urge you to consider what you can create to stand out.

Related: 4 Surprisingly Simple Ways To Stand Out From Your Competition

Revisit your ideas and improve them

If you have already begun a product, differentiate yourself and re-envision what you’ve already done. I guarantee you that when you think of something impactful and creative, others will see it and flock to you and your business. They will believe in your mission and see you as inspirational.

Focus your success on your organic growth

No matter your path, you need to consider certain factors if you are a startup. Remaining competitive and finding a way to differentiate yourself honestly is the ultimate goal of organic growth.

For us, especially with how significantly our business grew in such a short time, we don’t owe anybody anything, and it’s a risk we took. We chose to put everything into creating something nobody had ever done, and even in the end, it was far more tiring and more prolonged than we ever envisioned. Still, I promise you that the journey will be worth it in the end.

Hopefully, I provided you with the insight and inspiration needed to take that leap and take a risk. No matter what business you run, I hope you present something nobody has ever seen before, but also attempt to inspire people to follow you, no matter where your journey takes you.



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