Example: Sarah Grillo/Axios
Elon Musk and Mark Zuckerberg have both spent billions of dollars in their fortunes trying to improve the systems that support the lives of the rest of us.
Why it matters: These actions – Zuckerberg following trends, Musk buying Twitter – are unprecedented in their destruction. They reveal a world that is run not by useless companies, but by unpredictable and unstable people who have no financial problems.
Running a story: On Friday, Elon Musk bought Twitter for $44 billion, or $54.20 per share.
- It’s impossible to say exactly how much they’re returning, but my favorite rule of thumb is that Twitter’s share price, absent a derivative, would be very close to Snap’s share price, which is now under $10. (The two stocks moved when Musk expressed his interest on Twitter.)
- By the math, Musk and his silent partners are paying $35 billion for the memelord to own his favorite social media site.
Between the lines: Musk said, recently Thursdaythat he didn’t buy Twitter to make more money.
- There are many ideas that Musk may have on Twitter; the only thing that is certain is that he is bound without the obstacles of deception.
To see the facts: Facebook shareholders could be forgiven for thinking the same about Mark Zuckerberg, who – thanks to his company’s two-party voting system – still retains control despite his minority stake.
- Flashback: In October 2021, Zuckerberg announced the overhaul of Meta, and a major shift “from Facebook to being the first company to be successful.”
- In the year since then, quarterly revenue has fallen 4%, but due to increased spending on capital expenditures, total revenue has fallen 52%. The company’s shares have fallen by 70%.
On the number: Zuckerberg’s personal net worth has reached $104 billion.
- The other half of the ad duopoly, Alphabet, has dropped nearly half of Facebook in the same period.
The most important point: Twitter and Meta manage four of the most powerful and important social media platforms in the world. Musk has full control over Twitter; Zuckerberg has the same control over Facebook, Instagram, and WhatsApp.
- All have shown that they are willing to spend untold amounts of money in pursuit of greater influence in our daily lives.
💭 Felix’s opinion: I often say that it is easier to convert energy into money than it is to convert money into energy. Musk and Zuckerberg have shown how expensive energy can be – and how much men are willing to pay for it, too.