The Sincerest Form of Flattery
The world's richest man held a forum with Twitter employees ahead of his planned $44 billion acquisition of the social media platform.
The Point: CNBC kept a journal of the meeting. Just note that their reports were based on internal sources and that CNBC wasn't privy to the conversation. With that disclaimer out of the way, here are some highlights. Musk said he wants Twitter to reach 1 billion daily active users, a nearly 5x jump over its 229 million monthly active users. He also took the occasion to advocate for free speech on the platform. Still, he warned that Twitter should be careful about the opinions it promotes. Finally, it wouldn't have been very Elon-like to stick to the topic at hand. CNBC said he "briefly diverted the conversation into a discussion about aliens and human consciousness."
According to an internal memo obtained by The Verge, Facebook's plan to fight TikTok is to become more like them.
The Point: In 2021, Facebook saw its user count decline for the first time in history. That's, at least partially, attributable to the rise of TikTok. So Facebook is doing what it has always done when faced with competition: copy them. Instead of prioritizing updates from your friends, Facebook plans to take a page from TikTok and highlight content, regardless of whether you know the creator or not. "What we're really finding is that people want to connect over content," Tom Alison, Meta's executive in charge of Facebook, told The Verge. "And so a lot of where we're going with Facebook is trying to bring you the best content that's going to really cater to your interests, but then making it super easy to share that and discuss and connect with other people in your network over that."
Sports Business Journal said Apple is paying about $2.5 billion over ten years for the league's exclusive streaming rights.
The Point: Why is this worth mentioning? Because sports is the one hook traditional television companies have kept in consumers' backs. Cutting the cord is a tough sell if you're a sports fan. MLS isn't the most popular sports franchise in the country, but it's a start and a clear warning shot to cable and satellite providers. This will get really interesting if Apple or Amazon can snatch NFL's Sunday Ticket package or if Disney's ESPN finally offers a standalone service. If either of those two scenarios happens, Comcast, DirectTV, and others will have real cause for panic.
Domain Money, Inc. is providing this news summary for informational purposes only. While Domain Money believes that the information contained herein is reliable and derived from reliable sources, it makes no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information. Domain Money expressly disclaims any liability or loss incurred by any person who acts on the information, ideas discussed. The information contained herein is not, and shall not constitute an offer to sell, a solicitation of an offer to buy or an offer to purchase any securities or cryptocurrency, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service. Investing comes with inherent risks and you should always invest within your means and risk tolerance. Past performance is not an indication of future returns and you should always consult a financial advisor prior to making investment decisions. Please see important disclosures at https://domainmoney.com/legal
*The content team responsible for the above content uses primary and secondary sources they believe to be accurate, which includes but is not limited to Bloomberg, The Wall Street Journal, Financial Times, and CNBC, among others.
* Domain Money Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission and an affiliate of Domain Money, has (as of this writing) the following assets mentioned in this communication as part of its managed portfolios: TWTR, META, AAPL, AMZN, DIS