The Challenges Ahead For Elon Musk At Twitter

MEETING THE DOMESTIC NEEDS. >> ALL RIGHT, CONGRESSMAN RO KHANNA, THANK YOU VERY MUCH. WE APPRECIATE IT. LET'S BRING IN THE AUTHOR OF THE PIECE THAT WE QUOTED FROM ABOUT TWITTER BEING THE BOTTOMLESS MONEY-SICKING PIT THAT COULD BRING DOWN ELON MUSK'S ENTIRE EMPIRE. LYNETTE LOPEZ JOINS US NOW. SO HOW -- WHAT DO YOU THINK THE SO HOW -- WHAT DO YOU THINK THE CHALLENGES ARE BALANCED SHEET, AS CASH OR PROFIT. AND TWITTER'S BALANCE SHEET, 630 MILLION LAST YEAR. E, LON IS GOING TO HAVE TO FIGURE OUT HOW TO PAY PEOPLE, WITHOUT PAYING PEOPLE IN STOCK. YOU KNOW, TWITTER WILL BE A PRIVATE COMPANY, AND A DIFFERENT COMPANY. IT WILL HAVE $13 BILLION IN DEBT ON ITS BOOKS AFTER THIS DEAL. IT WILL HAVE TO SERVICE A BILLION OF THAT A YEAR. THAT IS A LOT. >> IT SEEMS LIKE HE MADE ONE MISTAKE AFTER ANOTHER GETTING THIS. WE HAVE GUESTS WHO LIKE TO TALK ABOUT E, LOCHB BEING ALL KNOWING. HE WAIVED HIS RIGHT TO SEE TWITTER'S FINANCES. I AM NOT THE RICHEST PERSON ON THE PLANET, PERHAPS I SHOULDN'T BE ASKING THESE QUESTIONS. AGAIN, IT SEEMS TO BE A VANITY PLAY. HE DIDN'T LOOK AT THE EXPENSES. IT HAS BEEN CALLED AN OVER LEVERAGED CLOWN. WHAT IS HIS BIGGEST RISK? >> THE BIGGEST RISK IS THAT HE CAN'T MAKE IT PROFITABLE, AND KEEPS THROWING HIS OWN MONEY N THE COST-CUTTING WILL COME ON THE SIDE OF TWITTER MODERATORS. 90% OF TWITTER REVENUE COMES FROM ADS. IF ADVERTISERS DON'T WANT TO PUT THEIR ADS AGAINST UNMODERATED CONTENT, TELL LOSE MONEY. HE TALKED ABOUT GIVING PEOPLE SUBSCRIPTIONS, GETTING TAYLOR SWIFT TO TWEET MORE, I THINK SHE HAS BETTER THINGS TO DO. IT IS UNCLEAR WHAT THE TURN-AROUND PLAN IS. THE FACT THAT WALL STREET BANKERS FINISHED THIS DEAL SO QUICKLY, AND THE BOARD FINISHED THIS DEAL SO QUICKLY, AFTER TAKING THAT POISON PILL, MAKE YOU WONDER, WHO IS HOLDING THE BAG HERE? I TL YOU, WALL STREET IS TAKING ITS POUND OF FLESH. E, LON ELON TOOK OUT A LOAN WITH ENOUGH INTEREST TO MAKE YOUR EYES WATER, IF TELSA STOCK FALLS BELOW $400, THEY WILL START TO SELL TELSA STOCK. HE IS CHANGING THE WORLD WITH BIG IDEA, HE WANTS TO COLONIZE MARS, HE CHANGED THE WAY -- >> I AM NOT GOING TO MARS, BUT OKAY. >> YOU DON'T HAVE TO GO, I GUESS. TWITTER FEELS LIKE SMALL BALL FOR HIM. YOU KNOW WHAT I MEAN? THIS PLACE FOR PEOPLE WHO WORK IN THE MEDIA AND POLITICS YELL AT EACH OTHER ALL DAY. WHAT IS IT ABOUT TWITTER THAT INTERESTS HIM? >> EVERYTHING THAT YOU SAID. HE LOVES ATTENTION. HE IS LOVING THIS WILL YOU, WON'T YOU. HE LOVES TO TALK. HE IS VERY SMALL PERSON ON TWITTER. HEIELED AT ME ON TWITTER. HE YELLS AT ALL KINDS OF PEOPLE ON TWITTER. FOR HIM, THIS IS THE MOST FUN THING. HE DIDN'T HAVE YACHTS OR COOL HOUSES, AND I MEAN, THIS IS WHERE HE HAS A GOOD TIME. DO I THINK IT IS A VANITY PLAY? YES, DO I THINK HE IS PUTTING TELSA AT RISK? ABSOLUTELY. DO I THINK IT WILL BE DIFFICULT TO TURN TWITTER AROUND? SURE. >> TELSA WASN'T PROFITABLE FOR 15 YEARS, THEY COULD TAP INTO PUBLIC MARKET, TWITTER WON'T BE ABLE TO DO THAT ELON IS GOING IN ALONE, NOBODY ELSE WANTS TO TOUCH IT. IT LOOKS LIKE HE IS A BAG HOLDER. >> WOW. SMALL BALL, WANT ONLY ATTACKING YOU A WEEK AGO, HE GOT SUCKERED