Musk's Twitter buyout a game changer

Elon Musk is undoubtedly one of the biggest technology entrepreneurs of our times. Starting from SpaceX to Tesla, Musk has been on a pursuit to achieve most arduous goals of mankind. In the process, the mankind is also reaping the benefits of his technology innovations through solving the contemporary problems faced by the globe. No wonder, Musk is a rock-star of technology industry with his every word, each tweet being closely followed by billions across the world. So, when he tweeted an offer to buy Twitter for $44 billion, the whole world has its attention. Opinion pieces are being written, each incremental move is being reported, and Twitter itself is divided with some arguing in favour and some against.

Meanwhile, Twitter board has unanimously accepted the offer of Elon Musk. As per deal, shareholders will receive $54.20 in cash for each share of Twitter stock they own. Upon completion of transaction, Twitter will be a privately held company. Jack Dorsey, the co-founder of Twitter and a tech titan, has supported the move saying that 'Elon Musk is the singular solution, I Trust.' Without dwelling into the debate around free speech and how Musk's entry will affect it or supplement it; Twitter is one the biggest leveraged buyout deals in history. The 16-year-old social networking platform, commanding a valuation of $44 billion shows the reality of our times. It indicates that technology has taken over the traditional media. Now, leaders communicate directly with their constituents, companies sell their products and services through the social media platforms and social influencers pitch for a specific element of their choice with their followers. In short, the world has changed. Technology has made sweeping changes how the world operates. That is the precise reason that world's top rich list has many promoters owning social media platforms.

In Indian context, significance of Twitter buyout is multi-fold. Firstly, it shows how technology-powered platforms can change the traditional business models. Unless traditional businesses embrace technology, existential issues may crop up. Secondly, technology-driven enterprises can scale up very rapidly. Their market is not limited to any geographical constraints. Examples such as Indian IT companies, SaaS firms and tech-powered startups indicate that sky is the limit as far as the market opportunity is concerned. In addition, Twitter buyout shows that if the platform is adopted by users, it will always find buyers. So, skeptics shouldn't doubt the valuation of Indian startups. If there is a willing buyer or buyers, the valuation is justified as it is between the buyers and the sellers. Most importantly, it sends a positive message to Indian startup ecosystem. Indian tech entrepreneurs can create a global brand having lasting impact on human lives. And Elon Musk shows that it is possible.

Lastly, India is low-income country with a huge set of economic issues. This throws open opportunities for Indian entrepreneurs to solve these problems, which in turn will be rewarding for them in monetary terms. If a solution can be found for India-specific problem, it can be replicated in many low-income countries, which will touch many lives. As Elon Musk's Twitter saga unfolds, there will be no dearth of business lessons in the coming time. Hopefully, those events will inspire a new generation of entrepreneurs in time to come.