Since Elon Musk, the CEO of Tesla and the wealthiest man in the world, made the offer to purchase Twitter, his supporters have been wondering what would be his next step. Companies like YouTube, Amazon, and Pornhub are all part of the rumor mill.
Some of Musk’s admirers are speculating as to whether he will next acquire Disney. Is Musk interested in Disney? Can he acquire it? First, it’s important to comprehend why Musk still wants to buy Twitter, despite the fact that the transaction has stalled due to the volume of false accounts on the microblogging platform.
Why Elon Musk offered to buy Twitter
Musk has many motives for wanting to purchase Twitter. First, Twitter seemed to provide decent value following the collapse. Conservatives have also criticized Twitter for its content control practices. Former President Donald Trump is attempting to take advantage of the outrage among conservatives over what they perceive to be the silencing of their views via his social media site Truth Social.
Also rediscovering his political identity, Musk describes himself as a “free speech absolutist.” Considering how influential social media sites like Twitter are in influencing public opinion, Musk’s decision to purchase the business makes sense, particularly as he becomes more involved in politics. And finally, Musk advertises Tesla items on Twitter. Purchasing the platform, which has several accounts suspended, would thus be a wise commercial decision.
What is Disney’s value?
The price of Disney shares just hit a 52-week low. Its market value is at about $175 billion. Disney would have to be purchased at a premium above the stock price at the time. Musk persuaded the board to accept his bid for Twitter despite their initial resistance by making a sizable premium offer for the company.
Theoretically, Elon Musk could acquire Disney
Musk could theoretically purchase Disney. His total wealth exceeds $220 billion, and his stake in Tesla alone is worth over $110 billion. Musk may get cash by offering Tesla stock or taking out a loan against his other assets. Though it would be difficult for Musk to get the funding, it is theoretically feasible. This brings up our last question. Will Musk really want to purchase Disney?
Perhaps Elon Musk won’t want to purchase Disney.
Unlike Twitter, Musk would not benefit financially from purchasing Disney. He would struggle to manage the company since it would consume a lot of his time. Tesla and SpaceX are only two of the firms that Musk already runs.
Tesla’s shares dropped when Musk proposed purchasing Twitter. The Twitter issue also caused some analysts to become uneasy about Tesla shares because they thought it would be a diversion. The last thing Tesla investors would want is Musk dividing his time between Tesla and Disney given that traditional automakers are increasing output while Tesla is behind schedule with new products and innovations.
Disney, which has been under fire from Republicans over its opposition to Florida’s “Don’t Say Gay” law, has received some criticism from Musk.
Musk, who has sworn to vote Republican in 2024, has supported conservatives’ demands to revoke Disney’s ownership of the Mickey Mouse trademark. Musk referred to the DMCA (Digital Millennium Copyright Act) as “overzealous” and a “plague on mankind” in his signature style. But Musk has now changed his political views in light of his corporate objectives. Overall, Musk is a wise businessman who may decide against selling his stakes in Tesla and SpaceX to acquire Disney.
Source: MarketRealist