chasing answers newsletter #8
Is Elon scared? And a belated recognition of Endangered Species Day
“Business opportunities are like buses, there’s always another one coming.” - Richard Branson
Welcome, welcome! This is the chasing answers newsletter, edition #8. To anyone just joining us, I want to Thank You for inviting me to your inbox! To those of you who have been around for a while, Thank You for not kicking me out of your inbox! Also, if you know anyone else who may want to join our small but growing inner circle, please give the share button a click. (👇it’s right here👇)
Now, let’s get to it.
Elon Musk and Twitter.
The story that just keeps giving.
It sounds like the honeymoon is over for these two love birds. After coming to an agreement that would have Elon buying the company for $44 billion and fixing the “free speech problem” (we all realize there isn’t a free speech problem, right?), now it sounds like the deal may be off (or maybe not…….yes, it’s off…….wait it might be on……I can’t keep up.)
Elon claims that the number of fake/spam/bot accounts on Twitter is much higher than the <5% that Twitter has repeatedly reported. If that were true, it would make sense that Elon’s initial valuation of $44 billion would be lowered. After all, if there are fewer “real” accounts, there are fewer accounts to be monetized through ads. And since more than 92% of Twitter’s revenue in the first quarter came from advertising, that would be a big deal.
However, many think Elon is just has buyer’s remorse. After all, when he initially made the offer, getting rid of fake accounts was one of the main points he claimed to be focused on, even tweeting, "If our twitter bid succeeds, we will defeat the spam bots or die trying!" So clearly, he believed there was a significant issue with them at the time. It’s a little hard to believe he would have put so much emphasis on that topic if he genuinely thought the number of fake accounts was less than 5%
The fact that the stock is down nearly 15% from the price it held when he made his initial offer doesn’t help. No one wants to pay more than the asking price for anything. Another factor is the price of Tesla stock. It is down over 33% since Elon first offered to buy Twitter. Since the value of Elon’s Tesla stock is a large factor in his obtaining the financing to purchase Twitter, that could be a huge determining factor in whether or not Elon can make this happen.
As far as Twitter is concerned, CEO Parag Agrawal has stated they are moving forward as though the deal is going through at the $44 billion price. They have no interest in renegotiating the agreement.
It’s been reported that there is no clause in the deal that would give Elon an out, even if the number of fake accounts is higher than Twitter reported.
Some legal experts say if Elon and Twitter can’t come to an agreement, this could drag out for 12-18 months in court. So, brace yourself for a volatile Twitter stock price and lots and lots of memes.
Endangered Species Day
photo courtesy of @schlorian
Last Friday was the 17th Annual Endangered Species Day, an event created in 2006 by David Robinson and the Endangered Species Coalition. It is a day to celebrate any successes in saving endangered species, educate people on what they can do to take part, and draw attention to what is still being done to destroy the habitats of millions of animals around the world.
I’m a little late on this, but in honor of Endangered Species Day, I want to highlight a few statistics about endangered species and bring attention to a few places you can donate if you are interested in helping out.
According to the World Wildlife Fund’s Living Planet Report 2020, the population sizes of amphibians, birds, fish, mammals, and reptiles dropped 68% between 1970 and 2016.
A report from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) shows that between 1980 and 2000, 100 million hectares of tropical forest were lost.
That same report found that urban areas have more than doubled since 1992.
The report also shows that at least 680 vertebrate species have been driven to extinction by human actions since the 16th century.
A study by Brown University proposes that species are dying off 1,000 times more frequently than they did before humans came into the picture.
Places to give
Center for Biological Diversity - Their mission is simply stated - “Saving Life On Earth.” That’s good enough for me. They also have on their about page this line “We want those who come after us to inherit a world where the wild is still alive.” I don’t think you could say any more in so few words.
World Wildlife Fund - If you are a runner, in addition to donating, you could participate in WWF’s 5K For Nature. On June 4th at 10AM EST, they will be holding a virtual 5k streamed live through the Charge Running app. To learn more and register for the event, click here.
Endangered Species Coalition - As stated on their website - “The Endangered Species Coalition’s mission is to stop the human-caused extinction of our nation’s at-risk species, to protect and restore their habitats, and to guide these fragile populations along the road to recovery.”
That’s all for this week folks.
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