What Twitter should do is extraordinarily obvious.
They should get very lean. Their platform has real value, which is why they're not disappearing in terms of use. There is also no replacement for what they provide and how they provide it, as of now.
At $2.4 - $2.6 billion in annual sales, they should be generating $600 to $800 million in net income. It's an absurdity of mismanagement that they're not. Their margins should be extremely high. At that level of net income, they can sustain a ~$20 billion market valuation and remain fully self-sustaining while they focus on growth + product.
They built Twitter as if it was going to be a juggernaut with high perpetual growth. They've been scaling back that structure very slowly, which is a mistake. They need to pull the band-aid off a lot faster, the crazy growth days are over.
If Wall Street doesn't give them a reasonable multiple on their new highly profitable structure, they should then work with perhaps a Ballmer + private equity + other insiders, to take Twitter private, where it can get out from under the Wall Street quarterly rat race.
I keep wondering about their part-time CEO. That has got to have some impact on the company culture. Just imagine how you would feel if your CEO couldn't be bothered to commit to the company full-time; would you in turn make suboptimal decisions through apathy? And then multiply that by everyone in the command chain.
I was going to type something like this and gladly found another person with similar thoughts. I firmly believe this is the right direction to go.
Of course, it's easy to suggest. I have to wonder though - what could really be the need for so many expenses? Is it impractical to cut down significantly and ride the success of the tech itself and sustain it with a much smaller set of teams?
They should get very lean. Their platform has real value, which is why they're not disappearing in terms of use. There is also no replacement for what they provide and how they provide it, as of now.
At $2.4 - $2.6 billion in annual sales, they should be generating $600 to $800 million in net income. It's an absurdity of mismanagement that they're not. Their margins should be extremely high. At that level of net income, they can sustain a ~$20 billion market valuation and remain fully self-sustaining while they focus on growth + product.
They built Twitter as if it was going to be a juggernaut with high perpetual growth. They've been scaling back that structure very slowly, which is a mistake. They need to pull the band-aid off a lot faster, the crazy growth days are over.
If Wall Street doesn't give them a reasonable multiple on their new highly profitable structure, they should then work with perhaps a Ballmer + private equity + other insiders, to take Twitter private, where it can get out from under the Wall Street quarterly rat race.