Elon Musk's $44 Billion Twitter Takeover in 2022: What’s Really Going On?

Since Elon Musk finalized his $44 billion acquisition of Twitter on October 28, 2022, the social media platform has experienced a whirlwind of changes that have captured global attention. Musk’s first ten days at the helm have overshadowed many of Twitter’s previous issues, introducing new challenges and controversies.

Key Highlights

• Musk cut Twitter’s workforce by roughly 50%, laying off about 1,850 employees from the company’s 3,700-strong staff.
• Remaining employees reportedly face intense work schedules, including 12-hour days and weekend shifts, to meet Musk’s rapid transformation goals.
• Major advertisers, including General Motors, General Mills, and Mondelez, have paused their Twitter ads amid fears of relaxed content moderation policies.
• Twitter introduced a new verification system offering all users blue checkmarks for $8 per month, though changes for existing verified accounts are postponed until after the November 8 U.S. elections.
• Musk assured civic leaders that controversial suspensions, such as that of former President Donald Trump, will remain in place pending review by a new content advisory council.

Following the acquisition, Musk swiftly dismissed Twitter’s top executives and dissolved its board, assuming sole directorship. The layoffs were reportedly executed “for cause” to avoid severance payouts, while some terminated employees were later asked to return due to essential skills.

In an unexpected move, Musk enlisted around 50 Tesla employees to assist in reviewing Twitter’s software code, despite Tesla and Twitter being separate entities.

Twitter’s revenue has reportedly plunged by millions daily since the takeover, with Musk attributing the decline to activist groups pressuring advertisers, whom he accuses of trying to undermine free speech in America.

Advertisers’ Concerns and Content Moderation

On acquisition day, Musk promised advertisers a platform that is “warm and welcoming to all,” distancing Twitter from a “free-for-all hellscape.” However, advertisers remain wary due to Musk’s history of prioritizing free speech over strict content moderation.

Several advertising giants have halted campaigns, while agencies have advised clients to reconsider their Twitter ad spend. Musk met with civic leaders on November 2 to discuss ongoing commitments to combat hate, harassment, and to uphold election integrity policies.

Despite these assurances, civic groups have warned advertisers that they may withdraw support if Twitter’s community standards and moderation policies weaken.

Rising Hate Speech and Platform Challenges

Research indicates a surge in racist and antisemitic content on Twitter following Musk’s takeover. High-profile cases include antisemitic tweets from rapper Ye and pro basketball player Kyrie Irving, both of whom faced suspensions.

Musk’s management style has been widely characterized as chaotic, drawing comparisons to political figures known for controversy.

Future Plans for Twitter

Amid the turbulence, Musk has pledged to enhance Twitter’s features rapidly. He announced plans to allow users to attach long-form texts to tweets, eliminating reliance on screenshots. Additionally, he promised expanded monetization options for content creators and improvements to Twitter’s search functionality.

Musk’s Twitter profile humorously labels him as the “Twitter Complaint Hotline Operator,” reflecting his hands-on approach to managing the platform.

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