World?s richest person Elon Musk completed his Twitter takeover with a $44bn deal.

World’s richest person Elon Musk completed his Twitter takeover with a $44bn deal. Musk has a net worth of $220.6bn as founder of SpaceX and CEO of Tesla. Musk has tweeted about his deal, saying “the bird is freed” and gaining a staggering 1.5 million likes. In a statement on his official Twitter @elonmusk about the deal, he wrote:

“The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence. There is currently great danger that social media will splinter into far right wing and far left wing echo chambers that generate more hate and divide our society. In a relentless pursuit of clicks, much of traditional media has fueled and catered to those polarised extremes, as they believe that is what brings in the money, but, in doing so, the opportunity for dialogue is lost.

That is why I bought Twitter. I didn’t do it because it would be easy. I didn’t do it to make more money. I did it to try and help humanity, whom I love. And I do so with humility, recognising that failure in pursuing this goal, despite our best efforts, is a very real possibility. That said, Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences! In addition to adhering to the laws of the land, our platform must be warm and welcoming to all…

I also very much believe that advertising, when done right, can delight, entertain and inform you…For this to be true, it is essential to show Twitter users advertising that is as relevant as possible to their needs. Fundamentally, Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise. To everyone who has partnered with us, I thank you. Let us build something extraordinary together.”

Musk’s deal did not happen overnight; he had been planning to acquire the platform for a while. In March, he acquired a 9.2% stake in Twitter, without their knowledge. Two weeks later the US Securities and Exchange Commission (SEC) filing made public that Musk was Twitter’s largest shareholder, and soon after he was offered a seat on the board. He accepted, but only a week later he backed out, fueling rumours that Musk could possibly be opting for a hostile takeover instead. A few days later Musk did in fact make a bid for Twitter, valuing the company at $43.4bn ($54.20 a share). This figure is actually more than Twitter is currently worth, with a current share price of $53.70. Twitter then accepted his offer, so the deal was not legally a hostile takeover. But Musk has been toying with the deal - backing out soon after its acceptance - which some speculate was due to his own personal wealth taking a hit and the bid being too high of a premium. Nevertheless, earlier this month he said that the original deal is still on the table, and he has now followed through. A filing was made with the SEC on Thursday, confirming the takeover.

Some high profile Twitter board members have reportedly been fired by Musk, including now former CEO Parag Agrawal and two other executives who were escorted out of Twitter’s San Francisco headquarters on Thursday evening. Legal chief Vijaya Gadde is said to be one of the employees terminated. Twitter’s now former chief financial officer Ned Segal confirmed his departure on Friday morning. He tweeted: 

“Thursday concluded 5 years for @twitter. I’m grateful for the opportunity to have worked with such an incredible group of people building the world’s town square for all of our stakeholders. The work isn’t complete, but we made meaningful progress. I have great hope for @twitter. At its best, it democratises communication and knowledge, ensuring accountability and equal distribution of info. It’s a huge responsibility for everyone that shares in the work. I wish them strength, wisdom, and foresight.”

Twitter has also filed documents asking to remove its shares from the New York Stock Exchange, the first official step towards privatising the company under Musk’s new ownership. Form 25 is what companies must file with the SEC to delist shares from public exchanges. Twitter’s official filing marks the end of a nine-year public run on the stock market. 

Reactions and Implications

Many voice concern about the political, social and cultural implications of Musk’s takeover. Earlier this month, Musk tweeted that “Buying Twitter is an accelerant to creating X, the everything app.” It is yet to be specified how Musk will engineer Twitter towards this goal.

On the one hand, in a democratic society it is uneasy that the richest man in the world can buy, control and implement his own views and vision on such a popular forum, used by 396.5 million users. On the other hand, going private could see Twitter turning a higher profit, but this would benefit primarily shareholders or those with high followings. In the replies to Musk’s Twitter statement user @ZubyMusic tweeted: “Twitter should find a way to compensate/monetisation partner with its top creators. Like every other social media app. A small % create all the high engagement content and keep the site active,” to which Musk replied, “Absolutely.” Whilst some support the idea that Twitter should start a monetization process similar to other social media apps, many enjoy Twitter for the sole reason that it has originality from other platforms and it isn’t saturated with generic influencer content. 

There is also a clear social danger in the idea, given that anyone can have a high following, even those with extreme views. Musk has previously expressed the view that Twitter is over-moderated, a controversial opinion as moderation against dangerous hate speech, offensive or illegal content and misinformation has led to banning figures such as Donald Trump, Tommy Robinson and Katie Hopkins.Twitter permanently suspended former US President Trump for risk of further incitement of violence after the Jan. 6, 2021 riots on the US Capitol. Musk has signalled he will reverse such lifetime bans. In May, Musk said “I do think that it was not correct to ban Donald Trump…I think that was a mistake because it alienated a large part of the country and did not ultimately result in Donald Trump not having a voice.” 

Earlier today, Musk tweeted he will be “digging in” to users who have been “shadow banned, ghost banned [or] search banned”. Musk has often critiqued Twitter’s bias’ both left and right wing, however in a report released in October last year, Twitter’s own algorithms were found to amplify right-wing content. In six out of seven countries – all but Germany – tweets posted by accounts from the political right receive more exposure by the algorithm than the political left when studied as a group.

But he has also said that he believes Twitter is beautiful for the way it “empowers citizen journalism - people are able to disseminate without an establishment bias.” Whether one supports Musk’s rhetoric and what he may put into action is largely dependent on one’s own political views and interpretation of free speech. If he allows people who have been permanently banned from Twitter, for a good reason, to return to the platform, is it prioritising being able to speak freely over the safety and welfare of those who are affected by harmful views? So far, Kanye West’s Twitter has been reactivated. The rapper was locked out week’s ago after a tirade of anti-Semitic comments. In the last few years, West has controversially espoused anti-Black and anti-Semitic views leading to his ban on social media platforms. His ban has also been lifted on Instagram earlier this week. 

In his tweet implying that by buying Twitter he is “freeing” the app from its constraints, it’s uncertain what laws and rules Musk will obey and which he’ll disregard. European Commissioner Thierry Breton shot back at Musk’s tweet, replying that “In Europe, the bird will fly by our rules.” The European Union’s new digital media regulation pushes Big Tech companies to do more to combat illegal content, otherwise they could risk being fined up to 6% of their global revenue. It is one of the strictest approaches to regulating online content in recent years. Back in May, a video of Musk posted by Breton showed Musk agreeing with the new EU regulations, saying it aligns with his thinking. Regulators in India also chimed in to remind Musk of the rules. Rajeev Chandrasekhar, India’s minister of state for electronics and information technology, said that “Our rules and laws for intermediaries remain the same regardless of who owns the platforms.” 

The Centre for Countering Digital Hate also weighed in. In a series of tweets, they said:

“Musk must not make Twitter a safe space for abuse and hatred. Musk thinks the world needs a new billionaire saviour, but the way to have better social media is more democratic accountability, not less. Social media platforms are public spaces. They should be accountable to us when they set rules and make promises. 

Musk has promised he won't let @Twitter "become a free-for-all hellscape". But he has consistently failed to understand freedom of speech does not mean freedom to abuse, which pushes women, people of colour, the LGBTQ+ community, & other marginalised groups out of online spaces.” The statement concluded that the CCDH will be keeping a watchful eye on Twitter and the new owner’s changes.

Analysts wonder what the response from Chinese officials will be, given that Tesla has expanded business in China (generating $14bn last year). Musk’s idea for an “everything app” parallels that of Chinese WeChat, an app which lets users send messages but also make payments, shop online or call a taxi. With a variety of services, the all-in-one app appeals to users in China where US based companies like Twitter, Google, Whatsapp, Facebook are blocked or partially blocked. WeChat was developed by China’s Tencent, a tech and media conglomerate which rivals the aforementioned companies. 

Musk has updated his Twitter bio to “Chief Twit”. He is known for frequently posting memes and jokes, controversial views and always keeping people guessing on what he will do or say next. Now that he has finally acquired Twitter, users will have to wait and see whether or not any of the measures he has previously spoken on will actually translate into action, and what that means for the platform long term. It could be the death of a platform that is ageing as others such as TikTok and BeReal rise, or it could be Twitter’s resurgence in the modern age. Just how far will Musk take it this time?

(Sources: The Guardian, The Independent, The New York Times, Twitter, Reuters, BBC News)