Tags: musk | twitter | x | the everything app

Musk Teases Twitter 1st Step to 'X, the Everything App'

Musk Teases Twitter 1st Step to 'X, the Everything App'

By    |   Wednesday, 05 October 2022 05:51 AM EDT

Elon Musk teased in a tweet Tuesday buying Twitter Inc. (TWTR.N) is an "accelerant to creating X, the everything app", after the billionaire proposed to go ahead with his original offer of $44 billion to take the social media company private.

"Twitter probably accelerates X by 3 to 5 years, but I could be wrong," he tweeted.

Although Musk has not disclosed his plans for Twitter, he has said the service could charge business and government users.

A 'Radically Better' Twitter

At Tesla's annual meeting in August, Musk said he had a myriad of ideas on how to make Twitter "radically better" and spoke about his vision for X, a financial services company he founded in 1999.

An "everything app" could be along the lines of TikTok or WeChat, each of which are used by more than 1 billion people every day, pundits and Wall Street analysts say.

Think of an ultra all-in-one application combining Facebook, Uber, Instagram, Substack ... and Twitter. "X, the Everything App" could extend far beyond social media to let people book travel, rides, dinner reservations; pay each other; and consume news and entertainment.

Perhaps more significantly, businesses could use it and make it even more profitable; 450 million businesspeople turn to WeChat daily for professional purposes, making the WeChat "economy" worth $240 billion, Bloomberg reports. In, 2021, its user base grew 12.5%.

Stock Soars 22%

News of Musk's U-turn to proceed with his $44 billion deal to buy Twitter may have felt like a stunning surprise from the brash billionaire who loves to shock. It sent shares of the social media platform soaring 22% Tuesday and stoked alarm among some media watchdogs and civil rights groups worried about what kind of free speech would flourish on Twitter under Musk’s vision.

But it wasn’t surprising to observers of the monthslong rollercoaster of the Twitter vs. Musk legal battle, as Twitter tried to compel the world’s richest man to consummate the buyout he had tried to back out of. In the months since his initial offer to buy Twitter in April, Musk faced a huge legal challenge.

A combination of gambles or missteps by Musk and potential advantages that didn’t pan out made his hand appear weak in the trial looming in less than two weeks in Chancery Court in Delaware. He is setting as a condition for completing the deal that the trial being put on hold.

More immediately, Musk faced a deposition in the case by Twitter’s attorneys starting Thursday.

What gambits, challenges and missed advantages came along the way? Musk grounded his argument largely on the allegation that Twitter vastly misrepresented how it measures the magnitude of “spam bot” accounts that are useless to advertisers.

But Chancellor Kathaleen St. Jude McCormick, the court’s head judge, apparently wasn’t buying it. As the two sides presented evidence prior to the trial, the judge appeared to focus narrowly in line with the court's mandate: on the merger agreement between Musk and Twitter, and whether anything had changed since it was signed in April that would justify terminating the deal.

A former Twitter head of security, fired early this year and turned whistleblower, appeared to bolster Musk’s argument. Peiter “Mudge” Zatko, a respected cybersecurity expert, filed complaints in July with federal regulators and the Justice Department alleging that Twitter misled regulators about its efforts to control millions of spam accounts as well as its cyber defenses.

'Cavalier' Spam Squabble

But help to Musk from Zatko’s disclosures was a “longshot,” said Brian Quinn, a professor at Boston College Law School, and in the end, “it didn’t really change the (legal) landscape in any significant way.”

“He was fairly cavalier,” Quinn said. Recently released text messages between Musk and others show jubilation over Musk taking a large stake in Twitter and joining its board. It wasn’t until after he signed the merger agreement in late April that he undertook what’s called due diligence, close inspection, regarding the company and starting lodging complaints about bots, Quinn noted. That may not have impressed the judge as the right approach for someone buying a major company.

In addition to the trial looming and his deposition scheduled for Thursday, Musk faced a ticking meter of potential rising interest costs. If he lost the trial, the judge could not only force him to close the deal but also could impose interest payments that would have increased its cost. Experts say the interest likely started piling up mid-September.

But, of course, the deal isn’t done yet, and there are legal hoops yet to be jumped through. Given Musk’s track record and volatility, it would be a mistake to assume that it’s tied up in a bow.

© 2024 Newsmax. All rights reserved.

Elon Musk teased in a tweet Tuesday buying Twitter Inc. (TWTR.N) is an "accelerant to creating X, the everything app", after the billionaire proposed to go ahead with his original offer of $44 billion to take the social media company private.
musk, twitter, x, the everything app
Wednesday, 05 October 2022 05:51 AM
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