WTF is happening with Twitter?
Billionaire tech tycoon Elon Musk said he closed a $43 Billion deal to gain complete ownership over Twitter – and then put the deal on pause. The entire deal or no-deal is causing many to question the future of the platform…
Talk about prioritizing your owned platforms… Elon Musk, Tesla CEO, SpaceX founder, Paypal creator, Grimes’ & Amber Heard’s baby daddy, and the richest man in the world bought Twitter. In recent months, the billionaire made headlines when he quietly started buying shares, eventually amassing 9% – and then complete control of the company.
Cue the succession music because we’re about to get into the details of the deal heard round the internet.
Elon Musks’ Twitter Coup Timeline:
April 4 2022 - Twitter CEO, Parag Agrawal offers Elon Musk a seat on the Twitter Board of Directors, seemingly accepts
April 10 2022 - Less than a week later, Twitter CEO Parag Agrawal announces that Elon has decided not to accept a seat on the board.
April 14 2022 - Elon announces he made an offer to buy Twitter
April 25 2022 - Twitter accepts Elon’s offer to sell itself for
May 5 2022 - NYT details Elon’s Twitter pitch deck which includes:
600 million users by 2025, then to 931 million by 2028 (currently 229M)
Increase revenue 5x by 2028 (from $5b in 2021 to $26.5b)
Cut Twitter staff by approx. 1,000 staff over the next year, then adding approx. 2,700 new employees by 2025
May 8 2022 - Elon cryptically tweets that he may disappear
May 10 2022 - Elon says he would reverse Trump’s ban from Twitter
May 13 2022 - Elon tweets that the Twitter deal is on hold
May 16 2022 - Twitter stock has lost all of its gains since Elon Musk disclosed his stake
May 16 2022 - Twitter CEO Parag Agrawal pushes back against Elon’s excuses for putting Twitter on hold
May17 2022 - Elon seeks renegotiation of the deal and calls for an investigation by the SEC
Twitter’s stocks have gone up and down throughout this process. Just this week, Twitter was valued at $29 billion, roughly $15 billion below the price Musk agreed to purchase for
If you’re left scratching your head over this - you’re not alone. There’s been a lot of shrugged shoulders around what this whole thing means for Twitter users, and especially, brands who have Twitter as part of the strategy. We’re going to attempt to break it all down and offer our POV.
Elon is, if nothing else, transparent
While people may not always understand why Elon does what he does (see erratic timeline above) they at least feel they have a sense of what he’s doing. In fact, as we write this he’s recently Tweeted concern for his personal safety. Talk about putting it all out there! While some discretion is key, transparency is a fantastic way to build trust with your audience.
In a recent episode of the uber popular New York times podcast, The Daily, host Michael Babaro discussed how Musks’ high profile investment in Twitter “ Plunged Twitter into a very public drama over its future.” Why? It all comes down to one thing: trust.
Some see Elon as a visionary who thinks big and implements change, especially when it comes to advancing electric vehicle technology through Tesla. These people have a lot of trust in Elon and his vision and, therefore, are more likely to be excited that he’s gained control over Twitter. In fact, when it was initially announced that Elon would simply be joining the Board of Directors, the Twitter stock price surged 27% in a single day. Talk about a prime example of his fanbase’s faith in his vision.
To others, Elon is an extremely eccentric billionaire and entrusting him with a(nother) billion dollar company is questionable. Babaro’s guest Mike Isaac, a technology correspondent for The New York Times, specifically calls out a potentially “dangerous'' way Musk has used Twitter in the past, “You kind of never know what you're going to get. If this dude decides to have fun or have a joke, it has repercussions, and that could have repercussions for your multi-billion dollar company that is traded publicly that has stock prices…”
Isaac cites, for example, how Elon tweeted that he was taking Tesla private at $420 a share, landing the company a $40 million fine with the SEC. The tech reporter also points out that Elon is prone to getting into arguments on Twitter that often result in his fanbase attacking anyone who dares disagree with him – like the time he called a British diver a “pedo.”
“I think troll is the perfect way to describe him. I think he would probably acknowledge that himself and half the time, you don’t know if he’s serious or not, which is potentially dangerous to have at the helm of a company.”
Consistency creates trust
Where Elon falters is in being consistent. While this has gained him a reputation for being an entrepreneur who is not afraid to roll with the punches and shake things up, it’s also made it difficult for people to know what to expect next. This isn’t the best position to be in when you’re asking millions of users to trust you with their content, data, and advertising.
The Influencer CEO
So who do you want at the helm of a company? Jules Terpak, Gen Z cultural commentator, did an in-depth substack essay covering the social media behaviors of CEOs like Musk, Jeff Bezos, Bill Gates, and Mark Zuckerberg. Terpak theorizes that, despite Musk's troll-y behavior, he may have influenced an uptick in social media activity in April from this group of high profile business leaders. This is part of a larger trend of social media adoption by the business elite.
We have to hand it to Elon; through his seemingly chaotic social media presence, he’s actually created quite the name for himself. As Terpak points out, “Yes, social media has utility— but there’s more at play. Tesla famously has a $0 marketing strategy much in part due to Musk’s cult-like following and addictive charisma (or shamelessness).” This ability to authentically tap internet culture to organically generate buzz is part of his relevance and why Gen Zers like Terpak appreciate him. She continues, “Elon Musk has an inherent strength for internet culture that Bezos, Gates, and Zuckerberg do not exude.” While some are put off by his inconsistency, others are charmed and feel that they “get” what Elon is doing.
“Similar to how some have a natural niche for comedy or art, I believe that some people just get it. You can get a sense of someone’s aura even through a screen, and some have a knack for expressing their individuality. I’m not sure how to elaborate but— the people that get it, get it.” -Jules Terpak
A small minority of the chatter surrounding Elon buying Twitter is the assumption that he did so to maintain control over his own narrative. Fueled by the aforementioned SEC fine, many have expressed concern over whether we can trust the eccentric billionaire with owning one of the main platforms where news is disseminated and whether or not he is going to force his own agenda.
TL;DR: When it comes to the influencer slash business person, trust is everything. However, what inspires trust for some, may erode it for others. This is the case with Elon Musk and his acquisition of Twitter. One the one hand, Musk is polarizing, particularly given his online persona. One the other hand, the very fact that he has an “online persona” affords him the benefit of the doubt. He may not be the first person you’d trust with your favorite social media platform but, given the perceived options (Zuckerberg, Bezos, Gates, etc.) he is the most online.
It is too soon to say what is going to happen with Twitter, or even if the deal will go through. While Elon’s power move is unprecedented, the platform, its audience, top creators, and its ecosystem are incredibly well established. Making true radical changes is easier tweeted than implemented. Elon may have recognized this, leading to his attempted departure from the deal. After all, despite his radical thinking and seemingly endless funds, even Elon can only manipulate the platform so much at once.
However, it’s clear that Elon intends to shake things up and whether or not he is successful, brands looking to market on Twitter need to stay nimble to respond to the changes. If his recent pattern continues, take any announcement coming directly from the billionaire with a grain of salt until you see the changes being implemented IRL. After all, it’s not a done deal… yet.