Why Prince Al Waleed "GAVE" Elon Musk $44 Billion...

Summary

In this insightful discussion, the speaker reflects on Elon Musk's acquisition of Twitter (now X), highlighting his early support for the platform’s potential and his close involvement in the process. He shares his opposition to selling shares at the initial $54 billion valuation, emphasizing the long-term value of Twitter as a global media platform. The conversation delves into Musk's leadership, from staffing changes to rebranding, and touches on the evolving media landscape, advertising dynamics, and future potential of X as an all-encompassing 'everything app' for the world.

Takeaways

• 😀 Elon Musk's $54 billion offer to buy Twitter was seen by some as undervalued, but Prince Alwaleed was against selling his shares at that price and wanted to stay with the company.
• 😀 Prince Alwaleed discussed his desire to remain involved with Twitter (X) with Elon Musk, and they reached an agreement that allowed him to keep his shares.
• 😀 Musk's decision to fire 80% of Twitter's staff sparked media backlash, but Prince Alwaleed defended the move, emphasizing the $2.5 billion in savings it brought to the company.
• 😀 Prince Alwaleed predicted that Twitter (now X) would reshape the media industry, seeing it as a global platform with significant potential.
• 😀 X, under Musk's leadership, is positioning itself to become an all-in-one app, with payment and video features expected to be added soon.
• 😀 Despite challenges with advertisers, Musk's efforts have led to over 80% of advertisers returning to X, signaling a recovery in advertising revenue.
• 😀 The rebranding of Twitter to X was a strategic decision to encompass new features and ideas, with the goal of expanding the platform's user base and influence.
• 😀 The ongoing expansion of X is seen as a step towards becoming the 'everything app,' integrating various features for users worldwide.
• 😀 Prince Alwaleed maintains good relationships with both Musk and other business leaders, including Bob Iger and Bill Gates, despite the differences in their business views.
• 😀 When comparing Jack Dorsey and Elon Musk as leaders of Twitter (X), Prince Alwaleed views Musk as the savior of the company, having revitalized it after Dorsey’s departure.
• 😀 Prince Alwaleed continues to support Musk's vision for X and its role in revolutionizing media, technology, and social interaction globally.

Q & A

Why did the investor initially disagree with the idea of Elon Musk buying Twitter?

The investor felt that Twitter was undervalued at $40 billion and did not want to sell their shares at the price Musk offered. They believed that the value of Twitter could go higher, so they wanted to remain involved in the company.

What was the investor's position on staying involved with Twitter under Elon Musk's leadership?

The investor wanted to stay involved with Twitter (now X) and not sell their shares. They even discussed their desire to stay with Musk and be a partner, which Musk supported by allowing them to keep their stake in the company.

How did the media portray Musk’s decision to lay off 80% of Twitter’s staff, and how did the investor respond?

The media focused on the humane aspect of firing 80% of Twitter's staff, portraying it negatively. However, the investor highlighted the financial benefits of the move, such as saving over $2.5 billion, which was not covered by the media.

How does the investor view the future of Twitter under Elon Musk's leadership?

The investor sees Twitter, now X, as the new media platform that will reshape how the world communicates, with potential features like payments and video content. They believe X will become a one-stop shop for social media and expand its user base significantly.

What role does the investor see for X (formerly Twitter) in the media landscape in the future?

The investor believes X will become the central forum for interaction among world leaders, influencers, and the general public. With innovations in payments and interactivity, X will evolve into a platform that integrates multiple services and expand its user base.

What is the investor’s perspective on X's rebranding from Twitter, especially with the new name 'X'?

The investor supports the rebranding to 'X,' believing the name reflects Elon Musk's broader vision. The name signifies expansion and inclusivity of new concepts, with the goal of attracting a larger and more engaged user base.

What was the investor's take on the challenges Musk faced with advertisers and the media's portrayal of X?

The investor discussed how certain organizations and advertisers targeted X, attempting to choke the platform. However, with Musk's leadership and strategies, many advertisers are returning, and X is being seen as the new public forum, especially with political alliances and growth in users.

How does the investor view the competition between Elon Musk's X and other platforms like Disney?

The investor acknowledges that while there may be tensions, both Musk and Disney understand the value of advertising on X. The investor remains neutral, emphasizing that both sides have their interests in supporting the platform's growth.

Did the investor mediate between Elon Musk and Bob Iger regarding their differences?

No, the investor did not mediate between Elon Musk and Bob Iger. While they are friends with both parties, they believe that Musk and Iger, as mature leaders, can resolve their differences on their own.

What is the investor's view of Jack Dorsey's leadership of Twitter compared to Elon Musk’s approach?

The investor respects Jack Dorsey for his visionary leadership of Twitter but felt that the company under his successors was not on the right path. They believe Musk's leadership has been more effective in reshaping Twitter into X and driving its success.