BỘ GIÁO DỤC VÀ ĐÀO TẠO

NATIONAL ECONOMICS UNIVERSITY

VIỆN QUẢN TRỊ KINH DOANH
-----oOo-----

NEGOTIATION ASSIGNMENT
Elon Musk and Twitter Inc.

NAME: Bui Thi Phuong Anh - 11219013

Nguyen Phuong Anh - 11219019
Vuong Ngoc Anh - 11219031
Tran Huu Huy - 11219063
Ha Anh Nguyet - 11219105
Le Phuc Anh Tuan - 11216068

Ha Noi, November 16th 2023

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 Table of contents
Contents

GROUP ASSIGNMENT 1:...........................................................................................................4

1. THE PARTIES INVOLVED TO THE NEGOTIATION CASE...............................................4

2. THE ISSUES/CONFLICTS AND CONTEXT OF THE NEGOTIATION ̣.................................5
3. THE GOALS/OBJECTIVES AND VALUES THAT EACH PARTY WANT TO ACHIEVE/GAIN
IN THIS NEGOTIATION.....................................................................................................................5
4. WHAT AND HOW ONE PARTY DEPEND ON THE OTHER ONE (INTERDEPENDENCE
AND INTERLOCKING GOAL)............................................................................................................5
5. THE NATURE OF NEGOTIATION: THIS IS MORE BARGAINING (DISTRIBUTIVE
NEGOTIATION) OR NEGOTIATION (COLLABORATIVE NEGOTIATION)..........................................6
6. OTHER ISSUES THAT GROUP WANTS TO TALK ABOUT?.............................................6

GROUP ASSIGNMENT 2:...........................................................................................................6

1. IDENTIFY ITEMS/ISSUES THAT NEED TO BE NEGOTIATED (PACKAGE)......................6

2. IDENTIFY NEGOTIATION POINTS (TP, WP/RP, IO/AP) TO THE ITEMS OR ISSUES
(OR KEY ONES) OF EACH PARTY/SIDE (REALITY OR GUESS/ASSUME)..........................................7
3. DEFINE THE SETTLEMENT RANGE (POSITIVE OR NEGATIVE) AND PRIORITY FOR
EACH ITEM IN THE PACKAGE OF ITEM/ISSUE FOR NEGOTIATION................................................8
4. DECIDING STRATEGIES AND TACTICS TO MOVE THE SETTLEMENT THAT BENEFIT
ONE PARTY AND/OR TO EXPAND SETTLEMENT RANGE AND HOW TO DO SO (TACTICS).............9
5. THINK ABOUT ALTERNATIVES AND BATNA (FOR ONE AND FOR ALL ISSUES OF
NEGOTIATION) TO OFFER TO OTHER PARTY (FROM ONE SIDE OF THE OTHER ONE)..................9

GROUP ASSIGNMENT 3+4:.................................................................................................... 10

1. DEFINE KEY COMMONALITIES AND DIFFERENCES AMONG OR BETWEEN PARTIES

(BASED ON THEIR CONCERNS, NEEDS, DESIRES....)......................................................................10
2. DEFINE POSITION (ADVANTAGES OR DISADVANTAGES) OF EACH PARTY IN THE
NEGOTIATION SITUATION AND HOW TO AVOID USING THE POSITION TO DOMINATE OTHER
PARTY 11
3. HOW TO INCREASE COMMONALITIES AND MINIMIZE DIFFERENCES AMONG OR
BETWEEN PARTIES........................................................................................................................11
4. WHICH NEGOTIATION APPROACHES ARE APPLIED TO THE CASE (BASED ON
NEGOTIATION ACTIVITIES/BEHAVIORS).......................................................................................12
5. WHICH STRATEGIES, TACTICS ARE APPLIED BY EACH SIDE FOR NEGOTIATION
(GOALS AND STRATEGIC AND TACTIC ACTIVITIES)....................................................................12
6. WHAT ARE OVERALL EVALUATION ABOUT THE OUTCOME OF THIS NEGOTIATION
SITUATION 13

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GROUP ASSIGNMENT 5+6:.................................................................................................... 13

1 COMMUNICATION CONTEXT......................................................................................13
2. ELON MUSK................................................................................................................13
3. TWITTER.....................................................................................................................14
4. WHAT ARE KEY SOURCES OF POWER OF EACH SIDE (IN THE NEGOTIATION
SITUATION)....................................................................................................................................14
5. HOW TO INCREASE THEIR POWER IN THE NEGOTIATION:.......................................15

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Group Assignment 1:
Based on the case study decided, group discussion to identify:
1. The parties involved to the negotiation case
The parties involved in the negotiation case are Twitter and Elon Musk
a) Twitter
- Business sector: Twitter operates in the social media network industry, providing a
platform for the dissemination of information.
- Market: Twitter has a large user base of about 319 million people worldwide, with 340
million tweets overall and 1.6 billion daily searches. The majority of Twitter's annual
sales come from advertising.
- Business Strategy: Twitter focuses on platform development, trend monitoring, forum
moderation, software development, hardware deployment, product roadmap, and IT
maintenance. They have developed their website, desktop apps, mobile apps, and
"Twitter Lite" for regions with unreliable internet connections.
- Negotiation objective: Twitter aims to secure financial support from Elon Musk to
improve its platform, software development, and IT maintenance.
b) Elon Musk
Elon Musk is a business magnate and investor, known as the founder and CEO of SpaceX and
the CEO, product architect, and angel investor of Tesla.
 SpaceX
- Business sector: SpaceX is an aerospace manufacturer and space transport services
company.
- Market: SpaceX provides transport services into Earth Orbit for customers such as the US
Government NASA, the Military Market, Telecommunication Satellite Providers, and
Merchandising. They have rich resources, including launch systems and support from
NASA and the US Air Force, as well as political support and public awareness.
- Business Strategy: SpaceX generates revenue from launches, International Space Station
(ISS) supply and crew transportation, and sales. They are developing vehicles like
Starship to facilitate human travel to the Moon and Mars.
 Tesla Inc.
- Business sector: Tesla is an electric vehicle manufacturer, specializing in fully electric
vehicles, advanced electric vehicle technology, and solar energy systems.
- Market: Tesla holds a unique position in the car market, being the only company selling
high-end electric vehicles in the green car segment.
- Business Strategy: Tesla focuses on R&D, design, innovative leaps, software
development, and sales and marketing. They generate income from the automotive,
energy production, and storage industries.

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→ Negotiation objective: Elon Musk wishes for Twitter to open-source its algorithms, publicly
sharing the decision-making process behind what tweets are shown to users. He envisions a
world with more freedom of speech.
2. The issues/conflicts and context of the negotiation ̣
Elon Musk, after acquiring 9.2% of Twitter, now aims to buy the entire company for $43 billion
in cash, offering a share price higher than the current market value. His motivation is to enhance
freedom of speech by turning Twitter's algorithm into open source, raising concerns about data
safety.
Despite Musk's determination, analysts remain skeptical about the deal's consequences.
Questions arise about how he will mobilize the committed $21 billion in private capital,
potentially affecting Tesla's stock price. Uncertainty looms over Twitter's executive team,
especially CEO Parag Agrawal, facing turbulence amid Musk's dynamic actions and unclear
future leadership after the acquisition.
3. The goals/objectives and values that each party want to
achieve/gain in this negotiation
Mr. Musk said: “I invested in Twitter because I believe in its potential to become a platform for
free speech globally, and I believe that free speech is a social imperative for a Democracy is
working”. For Elon Musk, this acquisition of Twitter will give him the right to freely change the
structure and orientation of Twitter Social Network to his preference.
The American billionaire said his decision to buy Twitter was not to make money. He wants to
take control so he can turn Twitter's algorithm into open source and increase transparency with
users. He also wants the content management policy to be softer, limiting indefinite bans and
switching to short-term bans.
Control user data more transparently and publicly than Musk's other technology companies such
as Tesla or SpaceX
For Twitter, this acquisition by Elon Musk will help the company increase profits, increase stock
prices and lead to many other benefits.
4. What and How one party depend on the other one
(interdependence and interlocking goal)
Interdependence is a situation where two or more parties rely on each other for resources,
support, or cooperation. Interlocking goal is a situation where two or more parties share a
common objective or outcome that they want to achieve.
In the case of Elon Musk and Twitter, there are several aspects of interdependence and
interlocking goal that can be identified:
Elon Musk depends on Twitter as a platform to communicate with his followers, customers,
investors, and the public. He uses Twitter to share his opinions, ideas, projects, and

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achievements, as well as to generate publicity, controversy, and influence. He also uses Twitter
to interact with other influential figures, such as celebrities, politicians, and journalists.
Twitter depends on Elon Musk as a user who attracts a lot of attention, engagement, and revenue.
He has over 100 million followers on Twitter, making him one of the most popular and
influential accounts on the platform. He also generates a lot of traffic, clicks, and ad revenue for
Twitter through his tweets and replies. He also brings innovation and vision to Twitter as its
owner and CEO.
Elon Musk and Twitter have an interlocking goal of transforming Twitter into a more diverse,
profitable, and influential media company. They want to expand Twitter’s offerings beyond text-
based social networking, such as video streaming, payment processing, e-commerce, and news
aggregation. They also want to increase Twitter’s user base, revenue, and market share in the
global media landscape.
5. The nature of negotiation: this is more bargaining (distributive
negotiation) or negotiation (collaborative negotiation)
In this negotiation, parties primarily focused on price adjustments rather than technology or
management aspects, classifying it as distributive bargaining. Elon Musk initially rejected a
board position, offered $44 billion despite Twitter's intent to push for a higher price, and engaged
in multiple negotiations, including one on delaying to redefine the company's value. Ultimately,
Musk completed the deal at the original price after unsuccessful attempts to lower it. The
challenging valuations of technology companies contributed to the prolonged distributive nature
of the negotiation.
6. Other issues that group wants to talk about?
Some takeaways from elon musk and twitter case:
 Best Offer Approach: Elon Musk's negotiation strategy mirrors Warren Buffet's by
presenting a firm offer and sticking to it. Despite skepticism, Musk's ability to secure
$46.5 billion in financing shifted Twitter's leadership perspective from strong opposition
to serious consideration.
 Direct and Clear Offers: Musk's success lies in his direct and transparent approach. When
expressing interest in acquiring Twitter, he openly disclosed his intention to buy the
company for $44 billion. This straightforwardness proved pivotal in finalizing the deal,
emphasizing the importance of clarity and transparency when making business offers.

Group Assignment 2:
1. Identify items/issues that need to be negotiated (package)
A better deal for Musk and Twitter?
 Price: Musk acquired Twitter for $44 billion, a 38% increase from its pre-stake
revelation stock price.

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  Personnel Management: Significant personnel changes occurred post-acquisition, with
Musk assuming the title "Twitter Boss" and expressing a vision for a shared digital
foundation.
 Brand Tech Transfer: Musk plans to introduce new features, open-source algorithms,
combat spambots, and integrate Twitter with his other ventures.
 Twitter's Challenges: Musk faced criticism for management decisions and account
suspensions, with concerns about overpayment amid Twitter's struggle to attract users.
 Ownership Structure: Post-acquisition, Musk became the sole owner, converting Twitter
into a private company, compensating other shareholders in cash or Tesla stock.
 Market Share: Twitter held 4.4% of the global social media market share, with about 353
million monthly active users in Q1 2022, competing with Facebook, YouTube,
Instagram, and TikTok.
 Service Issues: Changes implemented by Musk received mixed user reactions, with some
expressing dissatisfaction and migrating to alternative platforms, while others anticipate
innovation.
 Stakeholder Impact: Key stakeholders, including investors, employees, users, advertisers,
and third parties, experienced various benefits and opportunities following Musk's
acquisition of Twitter..
2. Identify negotiation points (TP, WP/RP, IO/AP) to the items or
issues (or key ones) of each party/side (reality or guess/assume)
 Seller (Twitter)
- Target Point: 60 USD per share
Long-term shareholders with index funds that hold the majority of Twitter stock, have fairly high
price expectations, at $60 per share, they tend to be bullish on the company's stock because they
think Twitter's intrinsic value is high based on its growth prospects.
- Walkaway Point: 50 USD per share
This point is predicted to be the WP point, because when reaching an agreement with Elon
Musk, Twitter's value was valued at 51 USD per share.
- Agreement Point: 54,20 USD per share ($44 billion)
This price is accepted in the first agreement and is also the final price. This is also a relatively
high price for Twitter.
 Buyer (Elon Musk)
- Initial Offer: 54,20 USD per share ($44 billion)
Elon Musk's high Initial Offer was one of his initial price tactics to quickly end negotiations.
This price is said to be much higher than Twitter's true value.
- Walkaway Point: 50 USD per share
- Target Point: $40 billion

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Although in terms of price, in the end he reached that agreement, due to lack of information and
inaccurate pricing, Elon Musk then returned to negotiate with a lower price that was also the
target price.
→This is a complex negotiation when negotiating points change during each negotiation session
due to many factors. In this case, the two sides have very few options for negotiation. Twitter's
bargaining power is somewhat greater. The cost for Elon Musk of withdrawing from this deal is
also large and brings litigation problems, so Twitter's Walkaway Point is also stronger.
3. Define the settlement range (positive or negative) and priority for
each item in the package of item/issue for negotiation
- The Twitter acquisition deal, valued at about $44 billion, will proceed at a closing price
of $54.20 per share, making Twitter a private company.
- Elon Musk, despite losing nearly $22 billion in fortune, has committed significant
personal funds (about $25 billion) and borrowed $13 billion from banks, with venture
capital firms contributing $7.1 billion.
- Twitter's unprofitable advertising business and increased debt from the acquisition
agreement have led to a rise in interest expenses to about $1 billion annually, impacting
its cash flow of approximately $630 million in 2021.
- To manage the debt, Musk may need to implement cost-cutting measures, including
laying off around 50% of Twitter's 7,500 employees and reducing spending on sales,
marketing, research, development, and fixed costs.
- Despite Musk's substantial net worth, the decline in Tesla shares poses challenges in
covering Twitter's financial needs.
Define the priority for each issue for negotiation
Based on the settlement range and the negotiation process, we can identify the prioritized issues
for the parties as follows:
The Issues of the negotiation Elon Musk Twitter

Purchase price High High

Technology and brand transfer High Low

Development strategy High High

Management and personnel Low High

In summary, both party express high preferences for a substantial purchase price, with Elon
Musk emphasizing technology and brand transfer. However, Twitter seeks a better deal,
anticipating growth potential. Development strategy is crucial for both, with Musk aiming for an
open platform, while Twitter prioritizes choosing the right executive for future steps.

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Management and personnel changes are a concern for Twitter, while Musk assigns lower priority
to this aspect. To resolve conflicts, Musk could maintain the original $44 billion price,
emphasizing technology transfer, while Twitter might compromise on development strategies to
secure priority in management and personnel decisions.
4. Deciding strategies and tactics to move the settlement that benefit
one party and/or to expand settlement range and how to do so
(tactics)
 Make your first offer the best offer
 Be direct and clear with your offer
- Leadership Changes: Elon Musk, if acquiring Twitter, could overhaul the leadership
team, appointing new executives or taking a more hands-on role in decision-making.
- Integration with Ventures: Musk may explore integrating Twitter with his other ventures
like Tesla, SpaceX, or Neuralink, using the platform for updates and information related
to his companies.
- Policy Influence: Musk's ownership might shape Twitter's policies and content
moderation, reflecting his views on free speech and online discourse.
- Innovation Drive: Known for pushing technological boundaries, Musk could invest in
new features and technologies to enhance Twitter and attract more users.
- Market Impact: The acquisition would likely impact the stock market, causing
fluctuations in Twitter's stock price and potential responses from other social media
platforms and tech companies.
- Regulatory Scrutiny: Any large tech acquisition, including Twitter by Musk, could attract
regulatory scrutiny, with antitrust and competition authorities assessing its impact on the
market.
5. Think about alternatives and BATNA (for one and for all issues of
negotiation) to offer to other party (from one side of the other one)
 Elon Musk:
Elon Musk has two options to realize his vision of creating a social media platform that allows
free expression: either build one from scratch or acquire an existing platform and implement
necessary changes. If the Twitter acquisition falls through, Musk has alternative options to
negotiate before revisiting the original plan of creating his own platform:
- Reddit: A massive forum for news and discussions where the community acts as the
primary overseer. Only content that is genuinely interesting and receives community
approval rises to the forefront.
- Tumblr: A platform that seamlessly combines personal blogs and social networking,
offering users free personal blog services and the ability to interact with diverse content
posted by others.
- Discord: A voice and text chat system for real-time communication, particularly popular
among gamers. It allows anyone to create a server for discussions on any topic, devoid of
algorithms, likes, and traditional social media features.
While these alternatives lack the extensive reach of Twitter, each has its unique strengths.
Facebook, a formidable competitor, and even Instagram, though rumored for acquisition by

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Musk, may not be the perfect replacements if the Twitter deal doesn't materialize, considering
Musk's past reservations about Instagram.
 Twitter Inc.:
Twitter's business outlook isn't particularly bright, with revenue primarily coming from
advertising rather than its user base, making it financially challenging. In its 16-year history,
Twitter has rarely turned a profit and experiences slower growth compared to competitors.
Considering this, a potential breakthrough might involve merging with a stronger corporate
entity for additional resources and development motivation. Alternatives for Twitter if not
acquired by Elon Musk could include:
- Microsoft: A tech giant with global influence, Microsoft has successfully transformed
unconventional social platforms, evident in LinkedIn's revenue growth from $2 billion
(2016) to over $8 billion post-acquisition. Microsoft has shown interest in social media,
as seen in its attempt to acquire TikTok.
- Salesforce: A leading provider of cloud-based Customer Relationship Management
(CRM) solutions worldwide. Notably, Twitter's board chairman, Bret Taylor, is one of
Salesforce's co-CEOs. In 2016, Salesforce's CEO, Marc Benioff, expressed interest in
acquiring Twitter, though the plan was ultimately abandoned despite initial optimism
about Twitter's prospects within Salesforce.

Group Assignment 3+4:

1. Define key commonalities and differences among or between
parties (based on their concerns, needs, desires....)
Commonalities
Both Elon Musk and Twitter aim for the development of this social network.
It is the increase of revenue, the clarity of the path, the development orientation for the company

Difference Elon Musk Twitter

s

Concerns - Purchase price - Profits, stock prices

The number of vexatious spam accounts on - Elon Musk's affordability
the platform According to Bloomberg's estimates, Mr.
- Debt financing Musk only has about $3 billion in cash and
Shareholder approval some highly liquid assets. So how will you
collect $21 billion?

Needs Elon Musk wishes for Twitter to open-source - Resell the company at the best price
its algorithms, publicly sharing the decision- - Looking for an executive who can
making process behind what tweets are grow the company
shown to users.

Desires - Take advantage of Twitter's profits Twitter aims to secure financial support from
- Accelerate the creation of X Elon Musk to improve its platform, software
- Restructure and change the development, and IT maintenance

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 orientation
- Freedom of speech on the social
platform

2. Define position (advantages or disadvantages) of each party in the

negotiation situation and how to avoid using the position to
dominate other party
 Positions
1 Elon Musk:
- Advantages:
 Substantial financial resources for Twitter's improvement.
 Ownership of innovative businesses (SpaceX, Tesla) with dedicated customers.
- Disadvantages:
 Limited expertise in the social media market.
 Potential financial constraints due to substantial investments in SpaceX and Tesla.
2 Twitter
- Advantages:
 Large user base (about 330 million globally).
 Effective, low-cost marketing to enhance Elon Musk's product reach.
- Disadvantages:
 Over 85% revenue dependency on advertising.
 Majority of tweets from a minority of users, including inactive and spam accounts.

 Avoiding Dominance
- Proposed Solutions:
 Adopt a peaceful attitude, goodwill, and a mutual willingness for beneficial solutions.
 Emphasize positive relationships and common goals.
 Use language focusing on shared interests.
 Prioritize flexibility and concessions for mutual benefit.
 Generate potential solutions, considering pros and cons collaboratively.
 Maintain a positive, long-term focus on mutually beneficial agreements.
3. How to increase commonalities and minimize differences among
or between parties
Increasing Commonalities:
 Shared Interests:
- Elon Musk: Aims for the freedom to change Twitter's structure and orientation.
- Twitter: Expects increased profits, higher stock prices, and additional benefits from
Musk's acquisition
 Building Rapport:
- Elon Musk: Holds the largest individual share (9.1%), fostering a close relationship.
- Twitter CEO: Balances relationship maintenance with ensuring mutual benefits.
 Effective Communication:

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 - Elon Musk: Emphasizes Twitter's mission for a lasting civilization, gaining support.
- Twitter: Maintains a peaceful attitude, tactfully refuses proposals, and uses
convincing arguments.
Minimizing Differences:
 Negotiation Strategy:
- Expert Suggestion: Proposes a mutually beneficial settlement; Musk accepts a lower
deal price for guardrails on decision-making authority.
- Twitter's Board: Faces a choice between settling for a lower sale price with guardrails
or fighting in court for a higher sale price.
4. Which Negotiation approaches are applied to the case (based on
negotiation activities/behaviors)
Elon Musk completed the Twitter acquisition agreement one day before the court-set deadline of
October 28, valuing the deal at $44 billion. This followed a tumultuous negotiation marked by
Musk's attempted withdrawal in July, citing issues with Twitter's data transparency. Musk's
decision to back out led to legal challenges from Twitter, damaging his reputation. However,
Musk reversed his stance on October 4, opting to proceed with the acquisition at the initially
agreed-upon price.
5. Which strategies, tactics are applied by each side for negotiation
(goals and strategic and tactic activities)
Elon Musk's Side:
Goals:
 Successfully acquired Twitter.
 Promote freedom of speech on social networks.
 Accelerate the creation of X - a super-tech app.
Strategic Activities:
 Develop a soft negotiation strategy:
Tactics:
 Use media tactics to gain more support.
 Use the "membership" strategy to have a voice at the negotiating table.
 Use probing tactics to easily pressure the opponent.
 Use pricing tactics to quickly end negotiations.
Twitter's Side:
Goals:
 Resell the company at the best price
 Looking for an executive who can grow the company
Strategic Activities:
 Develop a principled negotiation strategy.
Tactics:
 Use win-win tactics.
 Use strategies to help partners comfortably experience your products.
 Use tough counterattack tactics.
 Use the tactic of never agreeing to the first offer.
 Use negotiation closing tactics.

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 6. What are overall evaluation about the outcome of this negotiation
situation
Achieved Goals:
 Elon Musk's Achievements:
 Successful Acquisition: Despite recent losses, Twitter remains globally popular,
especially among professionals.
 Freedom of Speech: Twitter transformed into an open platform for diverse
content, opposing permanent bans in favor of warnings.
 Creation of 'X' App: Elon Musk proposed ideas to enhance Twitter, envisioning a
versatile super app.
 Twitter's Achievement:
 Selling Price: Shareholders received $54.20 per share, a 38% increase from the
stock price before Musk's stake revelation.
Evaluation:
 Elon Musk's Planning: Elon Musk strategically worked for a successful $44 billion deal,
higher than Twitter's estimated value.
 Twitter's High Sale: Twitter sold for $44 billion, surpassing its estimated $26 billion
value at the time.

Group Assignment 5+6:

1 Communication context
Elon Musk initiated the Twitter acquisition process with private text messages to Parag Agrawal
and Brer Taylor. The negotiations primarily occurred through email, with no face-to-face
meetings, except for legal proceedings in the Delawar Premier's Court. Despite the lack of direct
communication opportunities, Elon Musk was actively involved in the negotiations, supported by
close associates, entrepreneurs, and financial backers. Throughout the process, updates on the
negotiation progress were shared by both parties on Twitter.
2. Elon Musk
a) Opportunities
As a talented and wealthy businessman, Elon Musk knows how to make the most of his potential
and exploit Twitter to achieve his ultimate goal: full ownership of Twitter Inc.
 Having clearly defined his goals, Elon Musk gradually implemented the plan early and
made great efforts to achieve success in this agreement.
 Proactively prepare plans and build appropriate negotiation strategies. He was also very
aware that the invitation from the board of directors for him to have a position on the
board would hinder his ultimate goal of acquiring Twitter, so he refused this invitation.
 Understand clearly competitors and information related to activities to point out and
resolve with partners.
 Use pricing strategies to facilitate more convenient negotiations
b) Threats
After agreeing on a $44 billion deal, Elon Musk's claim about Twitter having fake account issues
became a risky bargaining move. Musk's refusal or attempt to lower the price led to legal
repercussions as Twitter sued him. Twitter's denial of Musk's data request jeopardized the deal.

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The market downturn, affecting Tesla's shares, and challenges in credit markets may have
contributed to Musk's regret over the $44 billion acquisition of Twitter.
3. Twitter
a) Opportunities
The negotiators for Twitter have the CEO and Chairman of the board directly, who know the
company best, are best able to persuade, and can make decisions directly.
The previous contact with Elon Musk shows a good starting relationship and easy
communication between the two sides.
When communicating online
 When sent via email, the terms are clearly stated - important and valid evidence
 When updating on social networks, attracting attention and comments and opinions of
others
 The dishonesty problem will decrease due to the testimony of many users on social
networks
When communicating face to face
 On legal issues, it is clear that Twitter is more beneficial when negotiating in court to
regain the right to perform the contract.
 Information about Elon Musk's financial capabilities can be certified directly due to the
participation of Elon Musk’s personal finance manager
b) Threats
During the negotiation process, the two sides only used two main methods of communication:
online via email and face-to-face. Besides the opportunities that these two methods bring to
Twitter, there are also a few threats.
When communicating online
 Security threat: If Elon Musk's email is stolen, the attacker could gain sensitive
information about Twitter's finances, business operations or even future plans. This can
seriously damage the company.
 Trust threat: If Elon Musk's emails are edited or falsified, Twitter may not be able to trust
the information Musk provides. This can lead to misunderstandings or arguments during
negotiations.
 Efficiency threat: Email communication can drag out and delay negotiations. This is
because emails can take time to send and receive, and can be difficult to track and
manage.
When communicating face to face
 Legitimacy threat: If any disputes arise during negotiations, it may be difficult for Twitter
to prove the legality of the agreement if negotiations are conducted in person.
 Threat of illegality: If Elon Musk makes illegal demands during negotiations, Twitter
may have difficulty rejecting this request if negotiations are conducted face-to-face.
 Threat of pressure: Elon Musk is a famous and influential businessman. He can use
pressure to force Twitter to accept demands that are beneficial to him if negotiations are
carried out directly.
4. What are key sources of power of each side (in the negotiation
situation)
Elon Musk:

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  Positional Power: As CEO of SpaceX and Tesla, Musk wields legitimate power,
influencing Twitter shareholders and altering their perspective on negotiations.
 Resource Control: Musk's substantial financial capital, gained through successful
business ventures, is a crucial advantage, meeting Twitter's primary need for financial
support.
 Informational Power: Musk strategically used information about Twitter's platform issues
during negotiations, shifting the direction of the deal.
Twitter:
 Resource Control: Twitter's extensive user base makes it a powerful marketing tool for
Musk, giving the platform leverage in negotiations.
 Contextual Power: Twitter, as a stable platform, holds the upper hand, with no initial
intention to sell ownership. Musk's ambitious goals for Twitter align with the platform's
stability.
 Informational Power: Twitter's legal actions and accusations against Musk demonstrated
their informational power, pressuring him to finalize the acquisition at the offered price
of $44 billion.
5. How to increase their power in the negotiation:
Elon Musk holds significant negotiation power in various aspects:
 Expert Power: Musk's extensive knowledge and success in technology, renewable
energy, and space exploration enhance his credibility, making his insights influential.
 Reward Power: As CEO of Tesla and SpaceX, Musk can provide valuable resources and
opportunities, offering collaborations or partnerships to incentivize favorable
negotiations.
 Coercive Power: While not dominant, Musk's public influence allows him to express
discontent or criticize Twitter, potentially influencing opinions and creating negative
publicity.
 Legitimate Power: Musk's role as the CEO of Tesla and SpaceX, leading successful
companies, provides him with formal authority and influence in negotiations.
 Referent Power: Musk's charismatic personality, vision, and industry influence create
admiration and respect, influencing perceptions and potentially swaying opinions in
negotiations.

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