Billionaire entrepreneur Elon Musk, CEO of automaker Tesla in Austin, Texas, has reached deal to acquire the social network Twitter.
Mask chasing twitter has been going on for weeks, and on Monday, Twitter’s board agreed to a sale worth about $44 billion.
Since Twitter is owned by Musk, Austin-based industry analysts and techs say it’s not hard to imagine he could move the company’s headquarters from San Francisco to Austin, or at least create a much broader corporate presence for the company in central Texas. which became focal point for Musk companies.
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Musk’s presence in Texas
Late last year, Musk announced that he was moving Tesla’s headquarters from California to Travis County, on the site of the automaker’s $1.1 billion plant that recently began production. Musk also moved the headquarters of his tunneling and infrastructure company, The Boring Company, to Central Texas, either to Pfluergerville, based on applications in California and Texas, or Bastrop, based on the company’s own job listings.
Musk is also pursuing a likely expansion of his SpaceX aerospace company in Austin, a potential Neuralink office in Austin, and moving his private foundation’s headquarters to Austin.
On Monday, after the deal became public, Gov. Greg Abbott backed the company’s move to Texas.
“@elonmusk. Bring Twitter to Texas to join Tesla, SpaceX and Boring,” Abbott wrote in a tweet.
Dan Ives, an analyst at Wedbush Securities, said that after Musk acquires Twitter, it is likely that the deal will lead to a significant Twitter presence in Austin.
“He’ll have more and more his operations around Teslaand I think in the future there will be some part of SpaceX operations and then eventually Twitter,” Ives said. “It’s all part of Musk’s structure.”
Ives said that the entrepreneurial environment in Austin is like “the DNA of the Mask.”
“I think he’s more comfortable in Austin than California,” Ives said.
Mark Arend, editor-in-chief of Site Selection Magazine, a national publication that tracks the county’s economic trends, said that while he has no way of knowing if Musk will move Twitter to Austin, the move could be beneficial.
“Austin, like other subways in Texas, has a large workforce pool and enough space to build new facilities with access to key infrastructures such as interstates and an airport with permanent international traffic,” Arend said. “The University of Texas at Austin will become a major source of skilled labor, as will other universities and colleges in the area. Companies and employees moving to Austin are likely to enjoy lower housing, energy and living costs than in many markets, including California.”
Amber Ganst, CEO of the Austin Technology Council, agreed that if Musk’s deal with Twitter is finalized, it’s likely that Twitter will move its headquarters to Austin. But that may not lead to a large influx of Twitter workers into central Texas, she said.
“Because the vast majority of their employees work remotely on a full-time basis, I don’t see a significant increase in the number of people moving to Austin specifically to work for the company,” she said. “This could potentially change if the new management decides they want employees back in the office. It may also affect those employees who have moved to other areas and whether they want to continue working for the company if this happens.”
Some technical analysts are not convinced
But some tech industry analysts say they’re not sure Musk will move Twitter’s headquarters to Austin.
Roger Kay, an analyst at Endpoint Technologies Associates, said there was no reason to move Twitter’s corporate headquarters to a new location.
“Apart from the fact that Musk is moving everything he has (to Austin), there is no obvious reason to use a virtual company from the ground up in the cloud to create a physical location,” Kay said. “They could be anywhere, and the fact that they’re in San Francisco is primarily because … that’s where they were, and that’s where they had employees.”
Kay said Musk could set up a small observation post for Twitter in Austin, but said he thought most of the company’s operations would likely remain in California.
The company currently has several thousand employees in California, but Twitter is also among the companies that are most moving to remote work. Last year, CEO Parag Agrawal announced on Twitter that employees will have the opportunity to work remotely forever.
Kay said there is little incentive for current Twitter employees to move out of California.
“You don’t force employees from San Francisco to go to Texas. It’s a completely different crowd,” Kay said. “Managers like Musk and others are moving to Texas for their own libertarian reasons. They like Texas’s less regulation and “do what you want” culture.
If Austin does indeed have a corporate headquarters for Twitter, it would add to the region’s recent spate of economic development successes, including relocations of Tesla and Boring Co., and the relocation of Oracle’s corporate headquarters to Austin, along with expansions from Apple and Amazon. Twitter also won’t be the first social media giant with a large corporate presence in Austin, as Facebook and its parent company Meta have multiple offices in Austin and more than 2,000 employees.
Bryce Bencivengo, director of communications and media relations for the Austin Chamber of Commerce, said recent expansions and relocations show just how attractive Austin is to many corporations.
“Austin’s secret sauce, which I don’t think is very secret, is a talent,” he said. “The flow of talent in central Texas is very, very strong. I think that’s a big part of why we’ve seen companies move and feel comfortable expanding here.”
Ganst of the Austin Technology Council said the growth and success of the region’s tech sector has also been a key factor.
“Our tech community has benefited greatly from this success, and not only from a larger company’s headquarters relocation or expansion, but also from the entrepreneurship that has developed as a result,” Ganst said.
Credit: www.usatoday.com /