In the largest corporate privatization deal in U.S. history, Twitter has accepted Elon Musk’s offer to buy 100% of Twitter for 44 billion.
Musk plans to privatize the company and do away with ads, a nearly 5-billion-dollar revenue source for Twitter, which accounts for 90% of their total income. Musk’s plan to do away with ads was nothing short of strategic. Musk is a free speech absolutist – or someone who believes that free speech should be unrestricted at all costs.
Advertisers are the main reason speech is restricted on social media platforms. For social media giants like Facebook, Instagram, and Twitter who rely on advertisers buying space on their platforms, as well as sponsored content, to make most of their profits eliminating this revenue stream is not a decision that should be taken lightly. Without these restrictions or community guidelines, advertisers would not advertise on social media, and the sites could not generate much of their revenue.
But, when your pockets run as deep as Musk’s, I suppose revenue doesn’t particularly matter.
Some changes Musk plans on making are as follows: He claims, that despite the lack of advertisements, he will quintuple Twitter revenue by 2028. He plans on doing this while cutting Twitter’s reliance on ads to less than 50% of the total revenue. He also plans on growing the platform’s user base. He claims by 2025 there will be 69 million users on Twitter (however, considering 69 is his favorite number I’m not sure if this is accurate or another one of his famous trolling stunts). He also plans on offering a paid service, Twitter Blue, which will allow users to customize their Twitter experience for only $3 a month.
However, advertising is not the only hurdle to free speech on a social media platform.
Now Musk will face a barrage of questions and restrictions from government watchdogs, regulators, and activists. Twitter could even end up being banned in other countries if Musk attempts to skirt regulations. Musk wants to strip back content moderation rules and stop the censorship of new organizations; he has also not answered questions about how he plans to go about this, only stating that he’d only allow free speech that “matches the law”.
However, several European countries are changing their laws. New laws in the United Kingdom and The European Union (which comprises 27 European countries). The EU, for example, has enacted the Digital Services Act and The Digital Markets Act which aims to create a safer digital space, while protecting the rights of users and leveling the playing field for businesses. These acts extend to social media. The acts, in part, heavily fine companies that refuse to curtail illegal content on their platforms. However, as of May 9th, 2022, EU Industry Chief, Thierry Brighton, met with Elon Musk in Texas and they have reached an agreement regarding free speech and The Digital Services Act. Yet, the pair has not gone into detail about what exactly their agreement entails. When asked, Musk simply stated that it “totally aligned with his thinking”.
Musk may have circumvented the largest spanning cyber laws, but that does not mean he’s out of the woods regarding governmental regulation of Twitter around the world.
Now, the decision for Musk to purchase Twitter, and go public was a polarizing one and was met with mixed reactions. People did not hold back, and many roasted Musk for his decisions.
Some of my favorite reaction tweets are:
Okay, but they make a good point. He’s been heralded as a “Real-life Tony Stark” and there’s nothing technically stopping him from being Iron Man.
Live your dreams I guess, Elon.
Sure some people are disgruntled by the whole ordeal, but there’s really not a way to boycott this. In fact, the user base is only projected to grow for Twitter, with Elon at the helm.
And, in true Musk fashion he trolled Twitter users, critics and fans by tweeting a series of Tweets detailing which companies he was going to buy next.
Musk then said would buy America’s most popular fast-food chain, and fix the most common complaint. I have to admit, I kind of want him to follow through on this one.
First, he threatened to buy Coca-Cola and put the cocaine back in, referring to the inception of the popular soft drink, when it first contained cocaine.
Lastly, the new Twitter CEO threatened to shut down the entire platform altogether, so that all the users go outside.
As of Friday the 13th (spooky), Musk announced his Twitter bid of 44 billion dollars is currently on hold.
He claims he still plans on following through with the acquisition, and he will owe Twitter a one-billion-dollar breakup fee if he does not follow through. However, if he can afford to spend 44 billion on a social media website, I have to assume one billion dollars isn’t much of a deterrent for him. The bid could be on hold for multiple reasons.
He could be trying to negotiate a better price for Twitter, the deal could be falling apart or he could simply be walking away. One issue is that he was going to borrow against his smart car company, Tesla, but Tesla stock has been plummeting as of late. A part of me wonders if this is some kind of bizarre stunt in order to get media coverage and attention prior to unveiling a new concept at either Tesla or SpaceX. After the frenzy the news of Musk purchasing Twitter has caused, the deal may not even go through, and once again, the future of Twitter remains uncertain.