Unpacking the Aftermath of Elon Musk's Twitter Purchase and Its Lessons for Business Negotiations

What happens beyond the buyout?

“One of the most effective negotiation strategies is preparation.”

-Walden University

Much of 2022 was dominated by the Elon Musk and Twitter story, which at first revolved around conjecture regarding the CEO of Tesla's potential acquisition of the social media giant. The question of whether Twitter could resist Musk's influence took center stage following his eventual purchase in October. Musk, however, made a common negotiation mistake when he prioritized closing the deal over thinking through its long-term consequences. This was clear in his controversial post-acquisition actions, which included firing important employees and using Twitter polls to make important business decisions. Negotiations, especially high-stakes ones like mergers and acquisitions, require a comprehensive strategy that considers both the immediate and long-term effects of the deal. Learning from Elon Musk's mistakes can serve as a valuable lesson in ensuring a more balanced approach to negotiation.

Preparing for your negotiation.

There may be difficulties and complexities following negotiations finalization if like Musk, the primary focus is on closing the deal rather than taking the long-term effects into account. Recognizing your error is a critical first step toward learning from it and refining your future negotiation strategy. Consider the following actions to resolve this problem and avoid making the same mistakes:

• Think about the effects: Give careful thought to how the choice made during the negotiation will affect the situation. Figure out which areas needed more attention to the effects of the deal after it was closed and which ones were mostly focused on deal closure.

• Decide the long-term effects: Figure out the potential long-term effects of the choice reached during the discussion on the business, its stakeholders, employees, and the business environment at large. Consider both the immediate benefits and any prospective hazards or difficulties down the road.

• Put more effort into developing mutually beneficial, lasting solutions that take the deal's long-term effects into consideration. Long-term success should take precedence over immediate benefits, and all parties involved should think about the wider consequences.

• Boost negotiating tactics: Make a significant investment in developing robust negotiating techniques that prioritize a comprehensive strategy that considers the agreement's long- and short-term effects. Incorporate into your bargaining strategy a complete awareness of the market and industry dynamics, effective communication, and exhaustive research.

• Plan for after the deal: After the agreement is concluded, create a thorough post-deal plan that describes the procedures and tactics to be followed to implement and manage it successfully. Potential obstacles, risk-reduction techniques, and ways to keep good relations with all stakeholders should be covered in this plan.

You may enhance your negotiating strategy and make sure that future negotiations are not just focused on closure but also on the long-term sustainable and effective management of agreements by realizing the significance of taking these measures into account and putting them into practice.