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Musk Inc: The New Twitter


April 14, 2022. Elon Reeve Musk makes the momentous offer to buy Twitter at $54.20 per share, valuing the company at around $43 billion. Not that it surprised anyone though. Musk had been steadily dropping hints, beginning with his investment in Twitter in late January, followed by his increased stake in Twitter over the next few months.

By March 14, he was the largest shareholder of the social media giant. By April 29, Musk had reached a deal with Twitter to acquire it for $44 billion, simultaneously securing financing by selling more than $7 billion worth of Tesla stock and securing commitments from venture capital firm Sequoia Capital and cryptocurrency exchange Binance.

Nothing’s ever smooth sailing though, as Musk suddenly tweeted on May 13 that the deal was on hold after expressing doubt over the deal because of the prevalence of bot and spam accounts previously unaccounted for in Twitter’s public filing. Analysts argued that this served as a pretext for Musk to bargain for a lower acquisition price since the value of the stock was likely to fall then given the uncertainty of the deal.

After a series of back and forth legal troubles for Musk, he finally agreed to go ahead with the deal in October, eventually closing it on the 28th of October. Let that sink in! Almost the entirety of the C-suite was fired within a day, with Elon also set to lay off half of all Twitter employees by November.

But let’s take a closer look at the man himself…
A judge has granted Musk’s request to delay a trial that was set to start on Oct. 17. (Image credits: New York Times)
Even before he became a household name, Musk has always been an exceptionally controversial figure, drawing heavy criticisms alongside almost fanatical followers. His constant presence in the public eye has turned him into somewhat of an internet sensation, unafraid to express his views on whatever world-shaking crisis is ongoing at a particular period of time.

Most recently, despite supplying free internet service to Ukraine via his Starlink system during the ongoing Russia-Ukraine War, he also ran a Twitter poll essentially parroting the Kremlin’s views on the war, advocating for peace under the conditions that Russia wants.

Other notable incidents include responding to Bernie Sanders’ tweet on taxing the extremely wealthy with “I keep forgetting that you’re still alive” and calling Democrats “the party of division and hate”. In a sense, his popularity stems from a similar source as infamous former President Donald Trump, banking on cult-like followers along with chaotic and antagonistic views that go completely against the norm.

But what exactly does Musk want?
Elon Musk's twitter account is seen on a smartphone in front of the Twitter logo in this photo illustration taken, April 15, 2022. Photo by Dado Ruvic/Illustration/REUTERS
Frequently cited as a “self-described free speech absolutist”, Musk has repeatedly expressed himself as a staunch supporter of the 1st Amendment. For a start, Musk announced that he would seek to improve the transparency of Twitter algorithms, specifically those that concern the moderation of user accounts, by clearly delineating the types of content and user behavior that warrants different types of moderation e.g. shadow-bans and account suspensions.

While presently unconfirmed, numerous rumors have also swirled around the possibility of Musk reversing permanent account suspensions. Unsurprisingly, critics have slammed Musk over concerns that harmonizing Twitter’s content moderation rules according to his own ideals would lead to an unbridled explosion in hate speech and extremist ideology, both of which are currently restricted by current algorithms.

In response, Musk has reassured advertisers - who contribute to the bulk of Twitter’s revenue - that he intends to “prevent the platform from becoming an echo chamber for hate and division”. Clearly, words alone have not allayed all fears. At the time of writing, some major advertisers including General Motors and Audi have temporarily suspended paid advertising space as they sought clarity over Twitter’s future under Musk. Considering his status as a billionaire saying and doing whatever he pleases, we should probably take his plans with a grain of salt.

This begs an interesting question-to moderate or not to moderate?

Twitter has been an interesting social media platform in the last couple years. With infamous political leaders like Trump and Ayatollah Khamenei using it to spread their own agendas, and plenty of other internet trolls merrily flooding the site with hate speech, Elon Musk’s purchase of the social media giant marks what could be a drastic turn for the worse or better.

In these early weeks since his acquisition of the company he has instructed staff to work 12 hours a day, 7 days a week to reinvent Twitter, forcing all staff to work from the office rather than their own homes. Twitter employees have even been forced to sleep on the floor due to this strenuous work schedule.
The image was posted by Evan Jones, product manager for Twitter Spaces, who is seen sleeping on the office floor.
Amidst mass firing of employees (with whispers of plans to get rid of 75% of the current Twitter workforce), Musk appears to be determined to overhaul the entire platform, already suggesting a $8 monthly fee for people to verify an account, claiming “power to the people” despite the policy reeking of profit seeking behavior. With the new “Chief Twit” being the sole director of Twitter as of writing this post, it remains uncertain whether Elon Musk will succeed in carrying out his goals of establishing a platform for free speech without hate speech, or end up guiding the company to its long expected demise after years of not making a profit.

The ongoing debate over the future of Twitter’s moderation policy also shines a fresh light on the Supreme Court’s take on 1st Amendment rights concerning the freedom of speech. While presently no other social media platform has opted to fully align with the 1st Amendment, some argue that Musk’s radical position is actually in line with the Supreme Court’s established position that any speech that does not incite “imminent lawless action” is otherwise protected (Brandenburg v Ohio, 1969). That being said, such a lenient content moderation policy is woefully inadequate outside of Twitter’s US home base. For instance, Twitter likely will face a swift ban under far more restrictive European free speech regulations.

“The bird will fly by our rules”


Whatever Musk’s ultimate vision for Twitter, the European Union (EU) has warned in no uncertain terms that Twitter must abide by the bloc’s new Digital Services Act (DSA) come 2024. A bold attempt by the EU to rein in the powers of Big Tech, the DSA sets out the bloc’s expectations for major social media platforms with the aims of creating a safer digital space for all. It is widely expected that Twitter’s existing moderation policies must remain in place (at least for EU users).

In addition, illegal material such as those containing terrorist propaganda and hate speech must also be promptly taken down within a stipulated period of time. Hefty monetary penalties await platforms that violate the Act with fines of up to 6% of the firm’s annual operating profits. While the DSA directly clashes with Musk's free speech ideals, even the richest man on Earth may think twice about falling afoul of the DSA given the huge sums involved.

With the EU having never shied away from reigning in Big Tech (Twitter was slapped with a 450,000 euro fine in 2020 for violating data privacy legislation), Musk likely understands that the bloc’s warnings are not to be easily ignored. Earlier in May, Musk clarified that the Act was “exactly aligned with [his] thinking”. Yet, the billionaire’s reassurances to regulators is scant on the details of how he would ensure Twitter’s compliance with the legislation. Is the bird really free?

Regardless of what Elon Musk has in store for us in the coming weeks, the chaotic billionaire appears determined to reshape what has long been an unshakable part of the internet. So far, it doesn’t seem promising.

Suggestions of paid subscriptions in exchange for verifying accounts, mass layoffs of the company’s staff and more plans to shift the site’s revenue away from advertisements to paywalls and paid direct messages makes it seem like Musk is more focused on establishing a social media site which he can freely manipulate, while earning a hefty profit in the process.

Regardless of what his intentions (publicly stated or otherwise) may be, we can only hope that Twitter will be added to the ambitious billionaire’s list of successful projects, rather than an abject failure that will leave the platform to gather dust, forgotten. On the bright side, maybe this is a good time to stop visiting social media so much?
 
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