He did it! Elon Musk managed to buy Twitter. At a price of $54.20 per share, the billionaire bought Twitter on 25 April for the modest sum of $44 billion. According to the SEC (Securities and Exchange Commission), Musk sold more than $8.5 billion worth of Tesla shares to fund his new acquisition. With big debts and rising interest, the odds look high that Musk will start looking for ways to create cash flow with the platform. What are the expectations? And what do we know for certain right now? Get comfy, this is everything you need to know.
Will Twitter become a private company?
Elon Musk wants to make Twitter a success; he sees potential in the network that isn't being used at the moment. With an eye on the "social necessity" of free speech, he believes the company should become private and therefore be taken off the stock exchange.
The biggest advantage of a private company? Making decisions without outside pressure. Only that way can Twitter transform into the free speech platform. Sounds great, right? Erm, not entirely. If everyone can suddenly post whatever they want, that means messages considered hateful can end up on the platform too. As an advertiser, seeing your ad next to offensive content? Hell no. And yet that risk suddenly becomes real.
The paradise of free speech
Yes, offensive content. Musk calls himself a 'free speech absolutist' and is convinced that free speech is the foundation of a well-functioning democracy. In his view Twitter has become too strict in regulating and moderating and — in certain cases — the platform has even removed particular tweets and accounts. Think of Donald Trump. On 8 January 2021 Twitter announced that the former president's account had been permanently removed because certain tweets, according to the network, incited violence.
However you look at it: Twitter is a platform that still plays an enormously important role in this day and age. The network is home to many politicians, journalists and opinion makers. Every tweet can potentially be world news. So is it wise to let a billionaire decide over such a hot medium? Musk doesn't walk back his statements but did give more context: "By 'free speech' I simply mean that which matches the law," he tweeted on 26 April. "I am against censorship that goes far beyond the law."
Paying for Twitter?
Because of the large debts, many expected Musk to look for ways to make money. On 4 May the Tesla boss tweeted the following: "Twitter will always be free for casual users, but maybe a slight cost for commercial and government users."
At the moment Twitter offers 'Blue', an opt-in monthly subscription giving you exclusive access to premium features that change how your Twitter experience looks. Such a subscription will most likely become a necessity for businesses in the future. By adding new features, Musk wants to change the algorithm to increase trustworthiness and make it possible to ban bots from the platform.
Conclusion
The tables have turned, and Twitter users will have noticed. What exactly awaits us? Only time will tell. Maybe the boss really is able to use his glorious business knowledge to transform Twitter into the ultimate social network he has in mind. This is his chance to prove himself.
And us? We're waiting with bated breath to see what he gets up to with our beloved Twitter. Did you know, by the way, that we Hippos can manage your Twitter too? Is your goal to make your business shine online? Book a call and who knows, we might take your business to new all-time highs.
