How Elon Musk could destroy Trump’s social media company

Yahoo Finance’s Rick Newman discusses the implications of Elon Musk’s give to obtain Twitter on Trump’s social media system, Fact Social.

Video clip Transcript

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Nicely, Elon Musk’s give to obtain Twitter could not only change the long run route of Twitter, but also Trump’s social media system, Truth of the matter Social. That’s at the very least in accordance to our pretty possess, Rick Newman. Let us carry in Rick. Rick, can we just start off by speaking about what we have heard from just about every analyst these days who claims the board is just not going to settle for this provide? But you’re operating on the assumption that he does transfer ahead, and get over.

RICK NEWMAN: So I’m playing this out. I imagine Elon Musk could get Twitter if he needs to. He’d have to increase the offer. I signify, at some place, I guess it would be a hostile takeover. But if he features ample, I signify, the board would really have no choice. But which is for you fellas to argue when I am off-air.

So let us say he does get it. In Trump world, the biggest problem– I suggest, they are ecstatic about this chance, for the reason that they think Elon Musk would enable President Trump again onto Twitter. Twitter, of system banned Trump soon after 3 days right after the January 6 riots in 2021. And they reported, he was fomenting, or glorifying violence.

So Trump has now started out his personal social media business, termed Real truth Social, which is below this blank verify corporation which is public, referred to as Digital World Acquisition Corp. And Truth of the matter Social, Trump’s own social community, which is just attempting to get off the floor proper now, is their most obvious start. So if you just participate in this out, let us say Elon Musk suggests, positive, I would be content to have Trump again on Twitter. What would Donald Trump do?

Well, True Social is getting no traction at all. Trump is not even publishing on there, because he desires it to turn out to be a hit initial. But without having Trump submitting, what is actually the position? No one desires to be there if they are not able to see what Trump is indicating. So I believe Trump would arrive back again onto Twitter in a heartbeat.

And if he does that, what is the position of Reality Social? It truly is tricky to see there’s any objective for it at all. There are previously a couple of other conservative, or appropriate wing social media networks. They’re nowhere close to the dimension of Twitter, Gab, and Parler, and I guess they are possibly a pair of others.

So if you participate in this out, and these things materialize, it’s tricky to see why Trump’s social would– justification me– Real truth Social would even exist. And if you look at the shares for the community father or mother company, DWAC, they are down about 4% nowadays. So those people shareholders are receiving wind of the plan that this could be poor for the new Trump company.

Yeah, I indicate, I guess they could possibly as perfectly call it Trump Social. But I required to ask you, is there it’s possible some feed-back circle in the reverse, ideal, from the viewpoint that is, Elon on the lookout at what is actually heading on with Real truth Social and saying, perfectly, I would have normally just begun my possess social media firm, but that definitely crashed and burned, so I really should just go out and invest in the other 1.

RICK NEWMAN: We don’t have any thought what Elon Musk is considering. I signify, we do not.

I know we do not.

RICK NEWMAN: We have glimpses though. And one of the grievances Elon Musk has designed about Twitter is this concern of totally free speech, I necessarily mean, as if Twitter is impinging free of charge speech. And that is a excitement phrase that some conservatives use for the way Twitter essentially specials with misinformation and lies, which I’m sorry to convey to the universe this, but it just comes about to be fringe conservatives who write-up lies and misinformation on Twitter more than any other political group. And which is why conservatives have taken up this so-referred to as lead to of no cost speech, which is a crimson herring.

But Elon Musk has echoed that, which is why– and glance, we know Elon– he’s not an overt Trump supporter, but he is Trumpy. He is libertarian in leanings, and he pushed back challenging in opposition to COVID lockdowns in 2020, and matters like that. So that’s why Trump supporters genuinely are loving this strategy that even if he would not purchase the organization, if he usually takes adequate handle of Twitter, that he could enable Trump back again on. Elon Musk has not indicated he would do that.

But look, our work, we’re commentators and speculators at this level. And no one even observed Elon Musk earning this bid for Twitter a couple of months back. So astonishing items can occur.

I imply, I guess if you summarize it, Rick. I mean, the reality is, all these tries to start off new social media platforms just have not labored. Whether or not it is Trump’s Reality Social, or some of those people other kinds you mentioned, I mean, there are founded gamers below. And that’s why I likely for Elon Musk it made sense to go in on that.

But a conversation we, of training course, I am guaranteed we’ll continue on upcoming 7 days. Thanks so substantially for that, Rick. By the way–

RICK NEWMAN: I have received a lot more to say.

A corporation we haven’t talked about today, Tesla. Elon Musk’s other firm, down extra than 3% in the–s