Implications of Elon Musk Purchasing Twitter

Implications of Elon Musk Purchasing Twitter

Twitter agreed to sell its social media platform on April 25, 2022, to Tesla, Inc CEO Elon Musk for $44 million. As the acquisition awaits completion, there is an expectation that the change in ownership will bring unprecedented changes to the platform. Aside from the much-anticipated reversal of former President Donald Trump's ban or the edit button inclusion, Twitter may become a private company with the finalization of this purchase.

Thus, it will no longer be a publicly-traded company. Financial transparency is now defunct. Current shareholders will receive $54.20 for each share owned if they agree to the sale later this year during the company's annual general meeting.

Musk will also be the sole owner of the platform, and this gives him absolute power to make changes unopposed. There is talk about Musk standing in as temporary CEO for a few months until the takeover is complete. There is uncertainty about whether there will be a permanent change in leadership.

Musk’s Visions for the Future of Twitter

It is too early to predict what is coming from this change in ownership. Nevertheless, Musk has voiced his vision for the platform.

Free Speech

Top on his agenda is the need to have free speech on the social media outlet, much to the chagrin of critics who endorse content moderation. The move stems from Trump's ban from the platform following the insurrection at the U.S. Capitol on January 6, 2021. Trump incited the mob by Twitting to his millions of followers.

Many await to see if that would mean all previously banned accounts will be free to share their opinion regardless of volatility. What is certain is policies about what passes as acceptable content will change. Musk's vision is to ensure bad actors remain active on the platform - even his own critics.

The Open Source Algorithm

Musk also intends open-source Twitter's algorithm to improve transparency. The algorithmic changes will also impact what users view in their feed. The changes to the algorithm are in sync with Musk's intent to end political censorship on Twitter. However, experts warn the move may create bigger problems.

As it stands, multiple governments have attempted to fight Twitter over censorship as it keeps them from controlling narratives and stifling democracy. Furthermore, in theory, Twitter is offering competitors its algorithm for free by making it easily adaptable.

Elimination of Non-humans

Musk intends to rid the platform of spambots. Part of this process includes introducing a verification badge to authenticate all real humans. The incoming owner considers bots a nuisance and a real problem to the budding platform.

The Future of Twitter Employees

According to Twitter's current CEO, Parag Agrawal, if Musk takes over the platform, the future of the company's employees remains uncertain as of now. There is no revelation of plans over reshuffling employees or mass firing or hiring.

Payment Using Dogecoins

Musk also wants users subscribed to Twitter Blue to make payments using Dogecoins - his own cryptocurrency creation - on the platform.

Musk's vision in this list is not exhaustive because not all of his plans for the platform are out in public. What is certain is there will be changes for investors and users with the change in Twitter's ownership.

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