Twitter, once clearly not a family-run business, has unwittingly become one. Its trajectory has not been the same as the Walmarts or Cargills of this world; it has gone through the scrutiny of the stock market before becoming private, in a highly competitive industry. Twitterâs executives have, as such, been brought up operating according to the intricacies of financial markets; focussing on quarterly reporting, cash generation and compliance with financial regulators.Â
When a company becomes publicly listed, it needs to go ânakedâ to the markets, and Twitter was no exception. From products to suppliers, the external world now knows a lot about Twitter and itâs worth asking what the implications could be.Â
Essentially, Twitter has sold its business model upside down to the financial markets. It has enjoyed the benefits of being public, including public feedback.Â
Having gone the public-private route, if Musk now starts speaking the language required to create the next Tetra Pak he is going to face some unique challenges. For instance, he will need to get rid of even more staff and those remaining â used to bonuses, stock options, media attention and the fanfare of the annual meetingÂ
The Twitter model is now so well known that it absolutely must remold itself, or it risks being superseded by TikTok or BeReal. Musk could make an acquisition, bringing him fresh ideas. Inconveniently, reinventing yourself is easier when youâre a publicly listed company as you can tap the markets . In this sense, Musk has made life harder for himself. Â
Family businesses tend to be more risk averse. With all their eggs tending to be in one basket, the board doesnât take big bets. But Twitter, operating in the tech space, cannot afford not to embrace newness wholeheartedly. The only innovation Musk has carried out so far at Twitter is making tweets longer, and this fact is a big concern for analysts.Â