The brand value of Twitter microblogging network platform has increased by 85 percent to $5.7 billion this year, even before the takeover attempt by Elon Musk, according to Brand Finance, a London based brand valuation consultancy.
According to a press statement by the company, the big increase in Twitter’s brand valuation was correlated with its extremely valuable brand amongst its biggest users: highly-educated opinion leaders, along with its provision of strong underlying support for Musk’s apparent investment thesis that significant improvements to revenue are possible.
“With the Twitter board now appearing likely to support Musk’s $46.5 billion proposal to take the company private, this brand valuation supports a potential vision for the Twitter brand that has not yet been commercialised,” it stated.
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The increase has also led to an improvement in its ranking amongst the world’s most valuable media brands, jumping 10 places from 36th to 26th.
Recently, Musk and Twitter agreed on a $44 billion takeover deal. The tech entrepreneur and world’s richest person plans to make the media platform fully private in order to restore its commitment to free speech.
Richard Haigh, the managing director of Brand Finance said Musk’s interest in Twitter underlines an often overlooked aspect of brands.
“They are crucial not just for grabbing consumer attention, but also in influencing investor behaviour too. Musk’s interest in Twitter, and the billions he is prepared to invest in it are the consequence, in large part, of the strength of its brand,” Haigh said.
Haigh further said that despite controversy about the acquisition, Musk’s personal brand may be beneficial to Twitter.
“In an attention-dominated economy, closely aligning the Twitter and Musk brands could be mutually beneficial,” he added.
Every year, Brand Finance puts 5,000 of the biggest brands to the test and publishes around 100 reports, ranking brands across all sectors and countries.
The media industry’s top 50 most valuable and strongest brands in the world are included in the annual Brand Finance Media 50 ranking.
