[HN Gopher] How Much Longer Can Twitter Last, Really?
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       How Much Longer Can Twitter Last, Really?
        
       Author : theery
       Score  : 30 points
       Date   : 2023-04-05 20:51 UTC (2 hours ago)
        
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 (TXT) w3m dump (every.to)
        
       | kosasbest wrote:
       | Weird. I can't read this page _with_ or _without_ JavaScript. Can
       | someone copy and paste the article here so people can read what
       | it says?
        
         | pitaj wrote:
         | Yeah that's weird, for some reason they have
         | html {             opacity: 0;         }
         | 
         | Works fine with JS on though.
        
       | m3kw9 wrote:
       | Twitter will last as long as Elon wants it to, the spend is
       | pretty much know. And it's a software problem. Sure if they make
       | zero money it's fail eventually but don't bet on that
        
       | pomsense wrote:
       | All these doomers don't realize the power of network effects.
        
       | OscarCunningham wrote:
       | There is a great deal of ruin in a nation.
        
       | exabrial wrote:
       | Can someone succinctly and definitively explain why everyone
       | wants Twitter to fail? It's a beat to death news headline at this
       | point.
        
         | cubefox wrote:
         | Journalists dislike Musk, so they write articles biased against
         | him, so most everyone dislikes Musk, including Twitter.
        
         | s4n1ty wrote:
         | [dead]
        
         | akkartik wrote:
         | How can anyone explain everyone?
         | 
         | Succinctly: I want Twitter to fail because Elon Musk violates
         | contracts.
         | 
         | A little more: If he gets away with it, more companies will
         | fire employees without paying severance. Toilet paper is also a
         | perk worth preserving.
        
         | adamrezich wrote:
         | "I don't like Elon Musk and it frustrates me that he managed to
         | purchase Twitter even though everyone in my bubble told me it
         | wouldn't happen and/or that the process of doing so would
         | bankrupt him, and neither of those things ended up happening"
         | 
         | optionally, additionally: "also I liked Twitter better when
         | only celebrities and friends of people who worked at Twitter
         | could be Verified, because I was one of those friends, and I
         | was Verified just like the celebrities, but the unwashed masses
         | weren't, and that made me feel important and good about myself,
         | and now that said unwashed masses can pay a nominal fee to
         | become Verified, and Twitter is phasing out the older, unpaid
         | Verified accounts, I'm going to take my ball and leave, because
         | feeling more important than most people was a chief reason for
         | me to use the platform to begin with. now come join me in
         | moving over to $NEW_SOCIAL_FEED_APP and follow me there--where,
         | you'll notice, my profile once again has an exclusive Verified
         | badge of some sort, setting me apart from you, the unwashed
         | masses."
        
           | giraffe_lady wrote:
           | I don't like elon musk and I do think it is _bad_ that a rich
           | person can buy an entire platform widely used for public
           | discussion because they don 't like how it's being used.
           | 
           | You're having fun mocking it but I don't think there's
           | anything particularly inconsistent or outrageous about this
           | position. Musk is annoying and hangs out with shitty annoying
           | people, now shitty annoying people are more prevalent on
           | twitter. The changes he's made to timeline, presentation,
           | _letting the white nationalists back on_ make it actively
           | worse for me, in ways it wasn 't before. None of these are
           | preposterous preferences my man.
        
       | adamrezich wrote:
       | it seems to be working just fine despite all the layoffs.
       | 
       | many of these complaints seem more political than practical. I
       | understand that a set of people exists who are dissatisfied with
       | twitter and/or are eagerly anticipating some grand implosion of
       | the company, but many more people than this set use the platform,
       | so questions like "how much longer can twitter last, really?"
       | come across as having come from a very insulated ideological
       | bubble, rather than taking the entire spectrum of experiences had
       | by twitter users into account.
        
         | [deleted]
        
         | wootland wrote:
         | There have been constant problems since Musk took over. Just
         | yesterday retweets were showing up in people's feeds without
         | the attribution of who retweeted them, so they looked like
         | random people showing up in your feed.
        
           | adamrezich wrote:
           | it would be hard to argue that the scope of the issues
           | directly correlates with the scale of the layoffs
        
       | smeeth wrote:
       | A meta comment: since Elon's takeover there has been an
       | astounding volume of Twitter doom wishcasting.
       | 
       | Almost none of these predictions have come true, and while I
       | suppose they may eventually, the posts/articles getting
       | increasingly difficult to pay attention to.
       | 
       | Every time I see another of these my reaction is "god, another
       | one?" I've been struggling to evaluate these articles on the
       | merits, I'm sure I'm not alone.
       | 
       | If you want to write an article like this and avoid this problem
       | I recommend that you take extreme care to at least pretend Elon
       | failing wouldn't give you profound schadenfreude.
        
         | dragontamer wrote:
         | > Almost none of these predictions have come true
         | 
         | There's only one prediction that really matters in my eyes: the
         | prediction that Elon would win the October 2022 court case and
         | somehow get out of his contractual agreement to buy Twitter.
         | 
         | Can the future be predicted? Ehh, probably not. But the thing
         | that has held up time-and-time again is legal, contractual
         | obligations.
         | 
         | 1. Elon Musk is terrible at understanding contracts.
         | 
         | 2. Because of #1, Elon Musk breaks contracts on a regular
         | basis.
         | 
         | 3. In some cases, Elon Musk gets sued, it takes months (or even
         | a year+) for the courts to address these contracts, and Elon
         | eventually gets his ass kicked in court.
         | 
         | #3 has the most uncertainty. But... Elon has been breaking
         | contracts with such vigor this past year (including his
         | attempts to "not buy Twitter", among others), that I'm willing
         | to bet that he's going to make the same mistake again, and
         | again, and again.
         | 
         | ----------
         | 
         | Haraldur Thorliefsson and the FTC case are both similar events
         | to the October 2022 court case in my eyes. They seem to have
         | solid foundation of law. They seem to have been ignored by Elon
         | Musk, and finally, there seems to be court action going on.
         | 
         | I don't know how long the court action will take, but I'm
         | willing to bet against Elon Musk on this one.
        
           | [deleted]
        
           | smotched wrote:
           | None of those are/were predictions...
        
             | dragontamer wrote:
             | Were you around here for the last year? That bots and mDAU
             | numbers are so awful that Elon Musk would obviously win the
             | court case? TWTR stock price was $35 or less (despite Elon
             | Musk's court-ordered offer of $54 per share).
             | 
             | Then, there was a prediction of "If forced, where would
             | Elon Musk's money come from??". And I think everyone knows
             | that Elon's #1 source of money is TSLA shares. Lo-and-
             | behold, TSLA drops dramatically as Elon sells $10s of
             | Billions to fund the Twitter deal.
             | 
             | This was probably some of the easiest money you could have
             | made last year in the stock market. Short TSLA in 2022
             | (since Elon needs a source of funding) and long TWTR
             | (because Elon would lose the court case).
             | 
             | ----------
             | 
             | Now we have other, court-based predictions going on in this
             | blog post. I'm not sure if there's much to trade on (maybe
             | short Tesla? If Musk has to tap into TSLA shares to pay for
             | these issues??)
        
         | edmundsauto wrote:
         | To be fair to the doomers- slow failures can look like
         | "business as usual" for a long long time. It's very dependent
         | on how someone defines success and failure. If Elon pours a
         | billion a year into Twitter, is that a failure? Alternatively,
         | is it really a success if it just keeps chugging along but
         | doesn't grow or innovate?
         | 
         | Maybe Twitters ends up something like IBM. It's still _there_ ,
         | but people can differ on whether IbM of the last 20+ years is
         | really successful.
         | 
         | Edit - this is why most "predictions" are dumb, they are not
         | concrete, measurable, or time bounded.
        
         | retox wrote:
         | The average person doesn't care about any of this crying, they
         | will use twitter for another ten years.
        
           | ceejayoz wrote:
           | The average person probably _doesn 't use Twitter_.
        
             | smotched wrote:
             | I think its obvious he means twitter user
        
               | smt88 wrote:
               | Twitter needs to dramatically grow its user base to
               | survive
        
         | gary_0 wrote:
         | Elon/Twitter stories get clicks in part because of the "how's
         | he going to get out of this one!?" factor. As the article
         | points out, Twitter's financial numbers and upcoming
         | liabilities don't look good. This is not subjective; Twitter is
         | in bad fiscal shape. In some ways Elon walked the same knife's
         | edge with Tesla and SpaceX (he himself admits how touch-and-go
         | it was at various points), but he managed to pull it off.
         | 
         | Now he's doing a similar stunt with Twitter, but with a much
         | bigger and more attentive audience. And a far cockier attitude.
         | 
         | And everyone's wondering how long he can play corporate Evel
         | Knievel before his luck runs out.
        
           | adamrezich wrote:
           | I thought it was quite well-understood that Musk has a long-
           | term plan to turn Twitter into "the WeChat of the West", a
           | centralized identity/payment platform, likely in the form of
           | x.com?
        
             | gary_0 wrote:
             | Sure, and he also has long-term plans to build a Tesla
             | autonomous android, and a SpaceX Mars colony. I wish him
             | the best of luck, but I'm not going to put money on any of
             | those plans succeeding any time soon.
        
               | adamrezich wrote:
               | of those three things, turning Twitter into WeChat seems
               | by _far_ the most plausible, achievable, marketable,
               | sustainable, and profitable--so, what point are you
               | trying to make here?
        
               | LiquidSky wrote:
               | The way he's been running Twitter, at this point a Mars
               | colony does seem more likely. It hasn't just been erratic
               | but actively buffoonish. The "plan" seems to be whatever
               | whim he has day-to-day, made infinitely worse by his
               | seemingly 24/7 capering on Twitter himself.
        
               | dvngnt_ wrote:
               | I highly doubt twitter will be the wechat of the west. I
               | don't think any app would be that at least for america
               | for cultural/political reasons
        
       | pipeline_peak wrote:
       | Longer than these long winded hate blogs...
        
       | jamestimmins wrote:
       | An alternative is that it gets purchased for a few billion
       | dollars by a tech PE firm or Microsoft, which honestly would be a
       | pretty good outcome.
        
         | paxys wrote:
         | A low single digit billion exit is meaningless for Elon. It
         | things reach that point it'll make more sense for him to just
         | ride it out till the end and file for bankruptcy.
        
         | dragontamer wrote:
         | Even if you bought Twitter for $0, you're taking on $13 Billion
         | in loans.
         | 
         | You'd have to buy Twitter for *negative* dollars, like -$8
         | Billion (ie: Elon gives $8 Billion to you and Twitter) to
         | "only" buy the company for $5 Billion effective costs.
         | 
         | Note: The $13 Billion loan is likely devalued 30%+, so maybe
         | its only worth $9.5 Billion these days. Hard to say exactly,
         | I'm just making some crude assumptions here. The loans may have
         | been backed by several banks, but they aren't trading on the
         | public market yet so its hard to value them.
        
         | dragonwriter wrote:
         | > An alternative is that it gets purchased for a few billion
         | dollars by a tech PE firm or Microsoft, which honestly would be
         | a pretty good outcome.
         | 
         | But with all the potential outstanding liability? Why not wait
         | until the hammer comes down and the uncertainty is gone to
         | purchase the firm, or whatever assets are useful, unless you
         | _really_ want to beat someone else to the punch?
        
           | dragontamer wrote:
           | I know you know this, but I'm going to elaborate for others.
           | 
           | Bankruptcy is the best time to buy companies. The loans will
           | be rewritten, so you can buy the company's assets _WITHOUT_
           | taking on any of its liabilities. The Twitter name,
           | trademark, and other assets (maybe source code, servers,
           | data-centers, etc. etc.) all will be up for sale. You can
           | likely buy the "bits of Twitter" you care most about, and
           | leave the other bits for others.
           | 
           | I have severe doubts that anyone will want to buy Twitter
           | when it has so much debt under its name. Might as well wait
           | for it to collapse first.
        
             | ericbarrett wrote:
             | Twitter is also under fairly severe consent decrees from
             | both the U.S. and EU. I wonder how those would work if you
             | bought e.g. the trademark?
        
       | brucethemoose2 wrote:
       | Option 3: Musk says something _particularly_ offensive and starts
       | an avalanche before these hammers even fall.
        
         | theery wrote:
         | Likely the most likely
        
         | dragontamer wrote:
         | I don't think so. There's been a lot of especially stupid
         | things said the last 4 years, and I haven't seen any real
         | backlash to any of it.
         | 
         | People like it when rich people say stupid things on the
         | internet. Its how he grows his fanbase.
        
           | brucethemoose2 wrote:
           | I dunno. He may not lose his fanbase, but there is a line
           | where many advertisers will leave, which will make the
           | _remaining_ advertisers antsy and more prone to leave.
           | 
           | And this is not unprecedented. See: Kanye West.
        
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