One of the largest leveraged buyouts in history, Twitter is officially delisted from the New York Stock Exchange as of November 8. As a newly minted private company led by its CEO, Elon Musk, there are shifts in the firm’s strategy.
So far, these changes are seismic.
Elon Musk has announced that he will be lifting restrictions on those followers who were previously banned for inappropriate behavior all in the name of “free speech”. What has resulted, according to a recent report, is an increase in hate speech and the use of slur words on the platform.
Last Friday, Twitter laid off 50% of its workforce. According to sources, Twitter is now trying to rehire some of its former employees recognizing them as valuable assets to the firm.
Amid the recent controversy, advertisers are starting to pull out. Notable brands include:
- Audi
- General Mills
- General Motors
- Mondelez International
- Pfizer
- Volkswagen
All citing a risk to their brand safety. Even the agency on record for the Canadian Federal Government, Cossette, advised the government of pausing activity on the platform.
Today, it’s not just enough to worry about a brand’s reputation and messaging, they are also being held to a higher standard by their consumers and key stakeholders on the company that they keep including the celebrities they endorse (ahem, Kanye West), the suppliers they use, the partnerships they make and this also means the platforms that they use to communicate with their audience. Consumers pay careful attention to the entire value chain.
Pre-Musk era, Twitter was struggling to compete against Instagram and TikTok. User engagement dwindled and they were accused of bot accounts which Musk used against them during the acquisition negotiations. Many say Twitter also didn’t do enough during the January 6 Capital Riots.
As a response, Twitter started clamping down on accounts who were seen as sharing misinformation or inciting violence. Some appreciated the efforts; some didn’t think they went far enough, and others thought this was an infringement on free speech. Now with Elon musk at the helm, that will change.
These are my predictions for Twitter’s new era:
- A focus on new revenue streams and ways to engage their followers through personalization and customization. Musk lives and breathes data and technology, he’s also business savvy. He will propose new ways to generate new revenue streams for Twitter, especially now that some advertisers are pulling out. He’s already shared his plans to charge a subscription fee for the verification mark.
- Lose mainstream audience and will attract a niche right-wing audience. Elon Musk has already announced his plans to bring back banned users like Donald Trump. These banned users were seen by many as bullies, antagonizers and those who promoted hate speech creating an unsafe environment for many. If these individuals are given free reign, many followers will feel uncomfortable, threatened, or triggered by their experience on the platform.
- Lose its initial intent of being a global community builder. The initial purpose of Twitter was to connect people. Twitter became a democratized international platform that helped ignite social movements including the Arab Spring and the Me-Too Movement. Now with Instagram, TikTok and the upcoming social platforms, Twitter has lost its prominence and I don’t think it will be able to rekindle that magic it first ignited when it was first created.
We’ll continue to see changes in the next coming months. What do you think is next for Twitter? Do you think it will flourish under Musk’s leadership?
The upshot 