Twitter as public and private company

An agreement to acquire Twitter has been reached, and there are so many comments about the final purpose Elon Musk has about this acquisition.

I would try to draw a map with the main business model characteristics related to Twitter as public company and now as private company. The model drawn is very basic, and you should not consider it too much, I just do it for fun.

Twitter as public company owned by Elon Musk

The basis of the business model is mapped as below:

Twitter as public company owned by Elon Musk

Key points of the map:

  • Shareholders try to maximize the profits and hence mix relevant information with advertisement and mechanisms that “invites” the user to consume more information or to write more.
  • So many of the final users understand it (I do not know how much of them). In any case the offering of not “clean”, “objective information for the user” or call it as you prefer, I think it has negative consequences for the platform.
  • Data is provided by users, and this data in some cases is biased by the fact that not 100% relevant information is offered. This is done to maximize the profits, but we do not know how much this is affecting to the understanding of the real picture about what people really think, and what people really want to consume.

Twitter as private company owned by Elon Musk (pre-mortem analysis)

This is a pre-mortem analysis, it’s the basis of the business model as I forecast at this moment (without understanding of Elon’s intentions) mapped as below:

Twitter as private company owned by Elon Musk

Key points of the map. All statements should start with “I think”:

  • Twitter is going to continue offering advertisement to keep dollars coming to the P&L.
  • Twitter is going to offer more “relevant information” to the user. I assume that not 100% of the “relevant information”.
  • When the user see more relevant information will be more predisposed to consume more information and more predisposed to write and comment more. This will increase the amount of data (which is very valuable asset of the company).
  • I forecast alliances with crypto and NTF organizations to attract users to the platform. Right now there are other platforms having reasonable amount of traffic and transactions.
  • Another move that they could do is to implement rewards in form of a crypto to the users so they can earn “twitter-coins” by using the platform and writing on it. This model is implemented already by Mastodon.
  • “Twitter-coins” could be sold, or they could be used to reduce number of advertisements or any other use.
  • You could acquire “Twitter-coins” to avoid advertisement.
  • The opening to offer more relevant information will decrease the maximization of profits through advertisement, but this will enable a data set with more quality and quantity.
  • The dataset will be used to build the next generation of Machine Learning Engines. How? I have no clue, but I think this is the direction and the fact that Elon Musk is one of the cofounders of OpenAI makes me think there will be synergies between both organizations.
  • The need of having a more evolved Machine Learning Engines is linked to Elon’s Mars mission.

Questions to pay attention

  • How is Twitter going to offer more “relevant information”?
  • How is Twitter going to increase the users and interactions happening in the platform?
  • Is Twitter going to “readmit” popular banned users as Trump?
  • Are going to be the rule of data classification going to be public?
  • Is Elon going to use the data just for his other companies? Or he is going to enable other players to get advantage of this first class dataset.
  • Is Twitter going to consider a partnership with Alphabet? (As Alphabet is one of the more advanced AI companies). Or they use OpenAI workforce to increase AI powerhouse.

Potential gameplays

The Wardley’s table of gameplays contains 61 moves, but I would pay attention to changes on “ecosystem” category.

Threads

There will be people thinking, ok, I want to leave Twitter and go to get similar content in other place.

Just goggle “alternatives to Twitter” and you will find a lot of articles offering an alternative: Mastodon, Reedit, Ello, Mind… Each one of them offer a different capability that makes them attractive for specific purposes: decentralized environments, anonymous users, groups…

Events

Some news related to events that have happened after the acquisition:

Post-morten analysis

To be done in future.

As usual, feedback is welcomed !!

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