Insider Finance - Business - Insider Today: Twitter’s unhappy ending

December 1, 2023 • 5 min read

with Dan DeFrancesco

Happy Friday! Come for the chicken sandwiches; stay for the content. Chick-fil-A is looking to get into showbiz with the launch of a family-focused entertainment app. Here’s what we know so far.  

In today’s big story, we’re looking at whether this is the beginning of the end for X.

What’s on deck:

But first, the end could be near.

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The big story

X doesn't mark the spot

Is this the end of X?

The website formerly known as Twitter seems like it’s on life support these days. You’ve probably heard that multiple times since billionaire Elon Musk took over, but the walls are closing in now. 

In case you missed it, Musk had a very pointed message to advertisers threatening to boycott X.

“Go fuck yourself,” he said before appearing to give a shoutout to Disney CEO Bob Iger. 

It was a shocking moment in a wild 90-minute interview that touched on many things but was noticeably light on the upcoming Cybertruck launch.

Musk also skirted two important questions about the future of X, as highlighted by Business Insider’s Katie Notopoulos: Would he ever sell X or use his own money to keep it afloat?

One theory is that this is all part of Musk’s grand plan to deliberately destroy X, writes BI’s Jyoti Mann and Lara O'Reilly. 

If that’s the case, job well done. Some junior and senior-level sales staffers are reportedly taking the money and running. Many have left the company over the past month after receiving their bonuses, BI’s Grace Kay writes. 

Muhammed Selim Korkutata/Anadolu via Getty Images

If this is the end of X, it’s one of those unique situations where no one comes out a winner.

Let’s look at the major players in this saga:

Elon Musk: The richest person in the world will always have fans, especially those who rode Tesla’s share price to a personal fortune. But setting aside his sycophants, Musk’s popularity has undoubtedly declined since his takeover of X. And as much as he likes to present himself as unbothered by critics, that’s clearly not the case. 

Linda Yaccarino: She was an advertising titan before coming to X. Now she’s been reduced to putting out fires set by Musk. And her reputation could be at stake, as she’s reportedly getting texts from ad exes advising her to get out while she can.

Banks: The loans used to finance Musk’s deal for X are essentially radioactive. Back in October, The Wall Street Journal reported the lenders were prepared to take a $2 billion hit to offload them. With X’s downward spiral, the $13 billion debt pile they're holding is only worsening. 

People who enjoy using X: For all its faults, X was our fun little corner of the internet. From starting silly debates to drawing attention to serious issues that led to significant changes, X served many purposes. But the platform has suffered under Musk, as everything from downloads to usage rates have dropped.

3 things in

Markets

🔔 Before the opening bell: US stock futures rise early Friday, after the Dow Jones Industrial Average finished its best month in more than a year.

Arantza Pena Popo/Insider

1. Inside the lonely life of Wall Street’s junior bankers. A six-figure salary and the opportunity to work on billion-dollar deals might sound like a dream come true for some college grads. But the reality of working as an analyst at an investment bank includes a lifestyle that’s much more secluded and isolated.

2. Bank of America’s 2024 game plan for the market. The bank detailed its top 10 trades for next year, like going long on distressed tech stocks, along with its reasoning. It also outlined six signs that a bull market is here to stay.

3. A deeper look at GDP growth is cause for concern. The US’s strong GDP growth during the third quarter led most to celebrate. But the gap between GDP and gross domestic income — total compensation given to production — hasn’t been this large since 2007. Here’s why that’s a problem.

3 things in

Tech

NurPhoto/Getty Images

1. AWS’s growth rate has slowed and a key sales team is struggling to meet its goal. It got ahead in cloud computing by catering to startups and small businesses better than competitors did. But the slowdown among startups has emerged as a major risk factor for the giant.

2. Sam Altman suddenly looks less powerful. After the OpenAI CEO’s tumultuous employment, Silicon Valley realized that the fate of the world’s most important AI company rests in the hands of just one person — Altman. Now, they’re no longer accepting that fate.

3. Leaked Broadcom changes. During an all-hands meeting, CEO Hock Tan ordered all employees within 50 miles of an office to “get your butt in here” (aka, return to in-person work). That directive included employees from VMware, Broadcom’s latest acquisition. During a meeting, Tan also shared plans to consolidate teams at VMware.

3 things in

Business

Veev

1. Inside the chaotic Thanksgiving-weekend collapse of construction unicorn Veev. Employees were stunned by a Friday night email saying the construction tech startup was folding. Here’s what the CEO told staff via email and during an all-hands meeting on Monday.

2. Why millennials say they need more than double the salary of other gens to be happy. Millennials said they need $525,000 a year to be happy. Their high number is likely due to high debt loads along with childcare and housing costs.

3. The return of dad fashion shows how Americans feel about the economy. It’s a humble throwback to the Kramercore of the 90s that followed a brief recession. The dad-core resurgence comes amid a more pragmatic economy as Americans worry about the downturn.

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The Insider Today team

Dan DeFrancesco, senior editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Lisa Ryan, executive editor, in New York.

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