Elon Musk and Mark Zuckerberg square off
Reuters Breakingviews, March 13 – Elon Musk’s territory is in Mark Zuckerberg’s sights. According to a statement sent to Breakingviews on Monday, Meta Platforms (META.O) is looking into creating a separate social network for text updates. Given that Facebook and Instagram have done a better job than Twitter at extracting money from their users, the move makes reasonable. Now that Musk’s platform is facing major difficulties, grabbing land is even simpler.
Since Musk acquired Twitter in October 2022, the social media platform has struggled with bugs and advertisers who have left. Yet even in the best of circumstances, Twitter was Facebook and Instagram’s backup dancer. The year before it went private, $370 million in cash was spent. In contrast, Meta made $38 billion in 2021.
From Breakingviews – Mark Zuckerberg takes on Elon Musk https://t.co/Q8Z8FmzSVm
— Reuters (@Reuters) March 13, 2023
Since then, Meta’s cash flow has decreased, although it’s possible that the two businesses have further separated. Twitter is still figuring out how to monetize people, whereas Zuckerberg has a business plan that does. Compared to $16 per Twitter user, each of Meta’s roughly 3 billion daily active users generated almost $40 in revenue in 2021. Although still being in its early stages, Zuckerberg’s Twitter rival has an advantage.
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