Will Musk succeed in his battle to fix Twitter?

For most of its historical past, the social community has been on the centre of political and social life, not simply in the US however globally. Yet it has failed to flip its affect right into a profitable business.

Twitter has turned an annual revenue simply twice, in 2018 and 2019. Shares have barely moved in virtually a decade as a public company. User numbers are dwarfed by not solely Facebook, however lesser and extra trendy social media apps corresponding to Pinterest and Snapchat. 

Even amongst customers who log in day-after-day, the connection is a tumultuous one: Twitter faces accusations from the fitting of being a ban-happy liberal echo chamber dominated by groupthink, and from the left of permitting hate speech and misogyny to run unchecked. 

Musk, 50, is but to define a transparent plan for what he desires to do with Twitter, however has hinted at what he thinks needs to be in the company’s future.

“Twitter has become kind of the de facto town square,” he instructed a convention in Vancouver earlier this month, on the day he unveiled his takeover provide, including that he needed to make it an “inclusive arena for free speech”.

That is probably going to be music to the ears of critics who say the company has swung more and more to censorship in current years, culminating with the banning of Donald Trump final year. By distinction, Musk has mentioned that Twitter ought to let individuals “speak freely within the bounds of the law”.

Bruce Daisley, who was Twitter’s head of Europe, the Middle East and Africa till 2020, says Musk is unlikely to burst into the company and rip up the rulebook. 

“The fact that he’s had success at multiple companies indicates that, rather than this notion that he wants it to be an orgy of free speech, he’s actually gonna go in there, and he’s gonna listen to intelligent people who’ve been doing the job,” he says. 

“The first thing they’re gonna say to him is, we tried unrestrained free speech. And it led to a lot of harm.”

Failing to crack down on abuse has put Twitter in scorching water with the advertisers that make up the vast majority of its income. Companies together with Unilever and Coca-Cola have at instances boycotted the company in response to hate speech considerations and stress from activists.

Musk has mentioned this could give Twitter a cause to wean itself off such promoting. “The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive,” he mentioned earlier this month. 

As one potential resolution, he has referred to as for Twitter to significantly develop its nascent subscription service, Twitter Blue, by chopping the worth and including options corresponding to id verification. It is unclear that this may be adequate to substitute promoting, nonetheless: even at its present worth of $3 (£2.4) a month, two thirds of Twitter’s 217m every day customers would have to subscribe to match the $5.1bn the company made in income final year. 

Musk has insisted he isn’t centered on turning Twitter right into a revenue machine. “I don’t care about the economics, at all,” he added on the day he unveiled the bid. Even so, the company would nonetheless have to service billions of {dollars} in debt Musk expects to use to fund the takeover, requiring a level of money movement.

If Twitter is to be rejuvenated, Daisley says taking it personal could also be one of the best ways of doing so. “Being a private company is going to make any running of the organisation significantly easier. At the moment, an organisation like Twitter spends a lot of energy every quarter, trying to deliver results to expectations. It’s a very exhausting process,” he explains.

Even if Musk has gained his battle with Twitter’s board, rescuing the company will probably be an uphill battle. But those that guess towards him earlier than have come to remorse it.

Back to top button