Details are starting to emerge from Elon Musk about Twitter.
The news of the week, in addition to the Blue Check Verification mess, was that bankruptcy is a possibility. This is what Musk related to the employees. It should come as no seret the financial situation the company finds itself in.
For Musk to turn this platform around, he is going to have to transform it into a financial network. One of the components is to make Twitter a payment company. This will allow it to process payments, similar to PayPal. Of course, according to interviews Musk gave, he has bigger plans. Evidently he outlined a plan 22 years ago when PayPal was forming. His partners did not want to go that far so the idea was discarded.
It appears Musk is ready to pick it up again.
Twitter Files With FinCEN
The paperwork is already underway. Reports are the company filed with U.S. Financial Crimes Enforcement Network (FinCEN) to process payments. This opens an entirely new arena for Twitter if it all goes through.
One of the avenues this could travel is for Twitter to offer debit cards and money market accounts. This will start the process of phasing it deeper into the financial services industry. It is something we discussed on numerous occasions since Musk officially took over the company.
Musk is inserting Twitter directly in the path of the financial giants. PayPal, Robin Hood, and even JP Morgan could all be affected.
Bet the ranch Musk is thinking big on this one.
Filing with FinCEN is one of the first steps in the process.
Musk is obviously running a huge risk. Dropping $44 billion to buy a company that is borderline bankrupt is over the top to start with. Of course, this is only the tip of the iceberg.
There was a lot of backlash since he took over. Musk operates as a lightning rod, upsetting people no matter what he does. Part of this comes with being the wealthiest person in the world. That said, Musk does have a way of bringing a lot of crap upon himself.
One of the positives that Musk does have going for him is the fact he does bring things to success. Tesla, SpaceX, and even Boring Company are making inroads in their respective industries.
Will Musk turn Twitter into a money maker is a question all are asking. However, we can presume that it will not achieve that end by focusing as a social media entity. That is only going to be one piece of what is offered.
The "Everything App" is certainly worthy of consideration. Finance and commerce are two areas that a digital platform should concentrate upon. This is what can provide enormous profitability to the company.
Musk is not unaccustomed to big bets carrying a lot of risk. This appears to be his modus operandi. Throughout his entire career he was willing to bet it all.
It is a position that should endear a great deal of respect from most. Few can operate with that mindset. Of course, his character flaws make it easy to dislike him and what he says.
Twitter is in for a rough time. Nevertheless, it is evident that change is underway. The outcome is going to be in question for some time but the steps to transformation has already begun.
Musk wants Twitter to be a payment company.
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