Twitter as a business:
Twitter has, over 19 different funding rounds (including pre-IPO, IPO, and post-IPO), raised $4.4 billion in funding; meanwhile the company has lost a cumulative $861 million in its lifetime as a public company (i.e. excluding pre-IPO losses). During that time the company has held 33 earnings calls; the company reported a profit in only 14 of them.
Given this financial performance it is kind of amazing that the company was valued at $30 billion the day before Muskâs investment was revealed; such is the value of Twitterâs social graph and its cultural impact: despite there being no evidence that Twitter can even be sustainably profitable, much less return billions of dollars to shareholders, hope springs eternal that the company is on the verge of unlocking its potential. At the same time, these three factors â Twitterâs financials, its social graph, and its cultural impact â get at why Muskâs offer to take Twitter private is so intriguing.
Start with the financials: Twitterâs business stinks. Yes, you can make an argument that this is due to mismanagement and poor execution.
Hence Musk.