Elon Musk’s tweets have hit the market, angered regulators, fined millions of dollars and even sued the world’s richest man. He now wants to fully purchase the platform.
In a letter to its chairman, Musk announced that the social media firm needed to be “transformed into a private company,” offering an unsolicited $ 43 billion takeover bid, and saying “change is needed.”
After stepping down as Twitter’s largest shareholder last week and rejecting an invitation to join its board, the company did not expect the billionaire to leave peacefully. “There will be scattering ahead,” CEO Parag Agarwal warned employees over the weekend.
Musk’s cash bid for Twitter has raised some feathers, but his filing on Thursday did not say what improvements he felt were needed, how he planned to do them, or why he thought it would be impossible to accomplish them while Twitter was listed. New York Stock Exchange.
However, on the company’s own platform, the millionaire has come up with several ideas for the company. On March 25, he said “free speech is essential for a functioning democracy,” and called on users to vote on whether the service “strictly adheres” to this standard.
“The outcome of this vote will be important,” he said. “Please vote carefully.” The “No” vote received more than 70% of the two million votes cast.
What Musk’s fans didn’t realize at the time was that he had already bought 60 million shares on Twitter for about $ 2.1 billion, according to a review of his stock market release. Ten days later, his bet was released.
Much of Musk’s concern seems to stem from his dissatisfaction with Twitter’s algorithm, which determines what his 217 million daily users see in their feeds. He claims that a “de facto bias” is having a significant impact on public dialogue, and he suggests that the algorithm be made public.
According to him, Twitter is virtually a digital town square where people who talk and listen should not face serious obstacles. The argument is welcome news to some who feel that Twitter users and content, especially fans of former President Trump, who were banned from the platform last year, have become too strict in policing. In recent years, the network has sought to combat harmful content and misinformation in response to growing concerns about such concerns on social media.
Mask may be one of Twitter’s most popular users, but the effects of some of his most controversial tweets have bothered him. The U.S. Securities and Exchange Commission ordered Musk to pay 20 20 million, stepping down as chairman of Tesla and seeking pre-approval from lawyers for some of his statements on the site when he claimed in a 2018 tweet that he had secured funds to receive funding in 2018. . The company is private.
In 2019, the millionaire was sued by Vernon Unsworth, a British cave diver who helped rescue 12 young men and their football coach “Pedo Guy” in Thailand. Unsworth sought $ 190 million in damages, but a U.S. jury ruled that Musk had not defamed him.
Musk recently proposed that Twitter remove itself from the source of 89 percent of its revenue: advertising, since it was ready to submit its bid for the firm. He said in a tweet last weekend that “relying on advertising money to sustain Twitter greatly increases a corporation’s ability to set policy.” This and other posts have since been removed.
Instead, he advocated expanding the platform’s newborn payment services on Twitter Blue, by reducing the cost of subscriptions and deleting ads for those who sign up. This is one of the few concrete suggestions from Mask, and it will build on what the firm is already doing.
Twitter staff quickly indicated that they had been working on another proposal for months. Following Mask’s poll on whether users should be allowed to edit tweets after posting, the business said it has been working on such features “since last year” and added that its team “did not get the idea from a poll.”
Twitter is under siege, with Meter facing stiff competition from fast-growing competitors such as Behemoth as well as Facebook and Instagram. The company has promised to increase its initial user base by 45 percent and annual revenue by 48 percent to 7. 7.5 billion by the end of next year.
While many on Wall Street are quick to point out the company’s innumerable problems, including weak growth and innovation, some doubt that the mask is the right person to turn everything around.
“I think the main problem is that we still don’t really know what Elon Musk wants Twitter to do,” Rich Greenfield, a partner at Lightshed Partners, told CNBC.
“I don’t think anyone would disagree that Twitter could be better managed. . . “Obviously, investors want Twitter to move faster, repeat faster, drive faster revenue.”
According to Greenfield, Musk’s advice is to adopt a “whatever goes” approach to free speech and the risk of “creating chaos” on the platform by moving the platform away from advertising, which is its primary source of revenue.
“There are parts of it that don’t make sense.”
Twitter users, as well as analysts who have spent years searching for the company’s rough history, are divided over the mask’s strategy for the road ahead. Other corporate investors will “love” his proposal, according to the billionaire. Its fate is in the hands of 11 board members who refused to join, not its 82 million Twitter followers.
Image Credit: Getty
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