The way I see it, Elon paid $44B for Twitter’s established user base and market share. I don’t understand how the company can continue to move forward with its existing legacy infrastructure, given how many of the employees have departed. The knowledge base required to operate and develop within the current infrastructure has been obliterated.
That being said, I think this may be what Elon wants. The old Twitter was a bloated and lazy company, both in terms of their infrastructure and employee base. To bring Twitter into the next decade, the entire thing needs to be burned down and rebuilt from scratch. Elon would have had an easier job doing this if he just started his own social media company, but then he wouldn’t have Twitter’s user base and market share. Twitter is one of those companies that just got there first and established itself, and by doing so is almost impossible to replace no matter how bloated, lazy, and lacking in vision it may have become.
Elon is going to have to create a very compelling vision for his new Twitter if he wants to be able to hire people willing to work “hardcore” hours though. Tesla and SpaceX both have top-notch technology and extremely compelling visions, which is why their employees are willing to work that hard. Twitter has never had that, which is why it has always been famous in the Valley for its lazy and unmotivated employees.
So for Elon to succeed here, he needs to do the following:
1. Communicate a clear and compelling vision for the new Twitter so that he can attract the kind of “hardcore” engineers he wants to hire.
2. Keep the existing infrastructure running well enough to avoid losing the established user base and market share.
3. Build out a whole new infrastructure for the new Twitter which will eventually replace the old one.
It will be extremely difficult to achieve this but Elon Musk does seem motivated enough to pull it off. I’m worried about #1 though, as nothing he has communicated about his vision for the new Twitter has been clear or compelling.
Furthermore, all of this fits perfectly into Elon’s established MO. He identifies a lucrative industry that has become weak and bloated, and finds a better way to do it. Then he moves into the industry, builds a younger, leaner, and more capable company, disrupts the old players, and takes over the industry. The process has already been done twice with SpaceX and Tesla. Twitter is an interesting case because Elon is disrupting it internally rather than externally, and Twitter’s business is lucrative in political power rather than profits. But it’s still essentially the same process being put into motion at Twitter as what Elon already did in the space and automotive industries.