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Now Tesla CEO Elon Musk has to prove why he thinks Twitter is 10 times more valuable Quantity and twist on social media platforms He spent months laughing.
Earlier this month, the outspoken billionaire said: “Myself and other investors are clearly overpaying for Twitter right now. Twitter’s long-term potential is, in my opinion, one dollar higher than its current value. Magnitude.”
Musk has provided few specific details about his plans, and what he has shared seems far-fetched or contradictory.
That’s the future of Musk, who calls himself “Chief Twit,” according to current and former Twitter employees, analysts and investors considering funding the deal.
X super app
Musk’s biggest bet draws on China’s biggest hits of the 2010s. Musk tweeted earlier this month: “Buying Twitter is an accelerator to create X, an app for everything.”
The idea of ​​​​all things apps (also known as super apps) originated in Asia, in partnership with companies such as WeChat, users can not only send messages, but also make payments, online shopping or taxi rides. The all-in-one service has attracted users with fewer options in regions where Google, Facebook and others are blocked.
Musk has told investors that he plans to build a service that sells premium subscriptions to reduce reliance on advertising and allow content creators to make money and make payments, according to people familiar with the matter.
Scott Galloway, co-host of the tech podcast Pivot and a professor of marketing at New York University, said there are no super apps in the U.S. because the barriers to entry are high and there are so many app choices.
Apple and Alphabet Inc’s Google, which control the iPhone and Android phone app stores, see themselves as superapps and are unlikely to allow other superapps to develop, Galloway said. Consider Apple’s recent rejection of Spotify’s plans to sell audiobooks, an example of a barrier to entry.
Increased payments, which often require authentication, could complicate services that allow anonymity to flourish, making Twitter a powerful tool for political activism in a hostile environment, said former Twitter board member Jason Goldman.
“At this point in the evolution of the mobile internet, that’s not possible,” Goldman added.
Clip content moderation
Current and former employees who spoke with Reuters said Musk’s plan to lower the guardrails common to all social media platforms would lead to a flood of hateful, harmful and potentially illegal content on Twitter. It is already working to identify and remove child pornography.
Employees are concerned that members of Twitter’s trust and safety team, including content moderators, are expected to make one of Musk’s worst layoffs.
“Imagine a world where all these people disappeared,” one employee said. “It’s going to be a hellish sight.”
prevent advertisers from fleeing
In 2019, Musk tweeted that “I hate ads.”
On the eve of the expected closing of the deal, he directly appealed to advertisers in an open letter tweet: “Twitter clearly cannot be a free hellscape, anything can be said without consequences!  …Twitter aspires to be the world’s most A respected advertising platform to enhance your brand and grow your business.”
Advertisers don’t buy it.
They point to Musk’s plan to restore former US President Donald Trump’s account as a major obstacle to spending money on Twitter. Following the January 6, 2021, attack on the U.S. Capitol, Twitter has permanently suspended Trump for risking further incitement to violence.
Mark DiMassimo, founder of ad agency DiMassimo Goldstein, said welcoming Trump back could alienate moderate and liberal-leaning users, pushing down major home brands that aim to promote products and appeal to different political parties.
Until Musk finds a new source of revenue, he can’t afford the backlash from the group that generates 90% of Twitter’s revenue.
abide by the law
Musk has pledged to uphold freedom of speech of all kinds, but has also adopted a more conciliatory tone toward global leaders aimed at controlling big tech companies.
In May, Musk said in a Twitter video that he agreed to new EU digital media regulations that would force big tech companies to do more to deal with illegal content or face fines of up to 6 percent of global revenue. The toughest way to regulate online content.
Regulators across Asia are also stepping up their legal stance against social media platforms and ordering the removal of content they deem illegal, including speech by dissidents.
In India, Twitter is engaged in a “complex battle” with the government to protect free speech online, and the battle will be at risk with Musk in power, Goldman Sachs said.
Tesla’s expanding presence in China, where it generated $14 billion in revenue last year, could also put Twitter at risk, said Goldman Sachs, a former Twitter board member.
“The idea that he’s going to be the one liaising with the Chinese government and potentially handing over user information is terrifying,” Goldman said.
He said Twitter is staffed with experts who review government data requests, but Musk has shown contempt for those experts.
“Whether or not Trump comes back, I think it’s an indoor game,” Goldman said. “But what actually happens is that the IP addresses of the dissidents get thrown on the ground.”
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