Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

What are Elon Musk's plans for Twitter?

What are Elon Musk's plans for Twitter?

Elon Musk didn't actually tweet about his new stake in Twitter, which for an avid tweeter seemed somewhat ironic.

Maybe it was because the 9.2% he now owns is described as a passive stake, although those who know Musk do not expect it to stay that way for long.

His first move was to launch a poll - asking whether people want an edit button, something long called for and perhaps something he personally needs.

The new announcement that he will join Twitter's board comes as no surprise.

In a tweet on Tuesday, Twitter chief executive Parag Agrawal said "through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board".


He added that "as a passionate believer and intense critic" of the service, he is "exactly what we need".

Later Musk replied saying he was looking forward to making changes at the social network giant.


Musk's 9.2% stake in the social media company may sound small, but Dan Ives, from analyst firm Wedbush, describes it as "eye-popping" - equating to 73.5 million shares in the social network.

Shares in the platform soared following Monday's revelation that the Tesla founder had become the largest shareholder in the company - meaning that stake has already grown in value and is now worth more than $3bn.

Musk's shareholding is four times greater than that of Twitter founder Jack Dorsey, who stepped down as chief executive in November.

Mr Ives believes the South African entrepreneur now has his eyes "laser set" on Twitter, and his significant holding will see him push for an active role in the management of the company.

"We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter," he said.

When Elon Musk has an idea, he often turns to Twitter to express it


Musk has something of a love-hate relationship with Twitter. He is a frequent tweeter, with more than 80 million followers - and no stranger to controversy in his interactions on the social media site.

The platform seems to suit his impulsive personality - last year he famously asked if he should sell 10% of his stock in his electric car firm Tesla, to which Twitter users said 'yes'. It led to Musk selling around $5bn (£3.7bn) of shares in the firm in November.

Months earlier he had offered to sign a cheque for $6bn if the World Food Programme (WFP) could explain how it would be used to solve hunger around the globe - after an assertion made by the head of the UN programme.

But tweeting has also got him into trouble. A 2018 post about Tesla stock led to an investigation from the Securities and Exchange Commission which ended with an agreement requiring the firm's lawyers to pre-approve certain tweets. It is unclear if that actually happens.

Interestingly, the Wall Street Journal reports that his Twitter share filings with the Securities and Exchange Commission (SEC), which under normal circumstances would include a line saying he doesn't intend to influence the company, came with a 'Not Applicable' mark.

The timing of the deal has also raised questions and could once again put Musk at loggerheads with financial regulators.

His investment in Twitter was filed on 14 March, but not announced until this week. US securities law requires disclosure within 10 days of acquiring 5% of a company.

Free speech


Musk uses Twitter not just as a barometer for how he runs his own companies, but also increasingly to take the temperature of the nation.

Last month, after he had lodged his investment with the SEC - but before his shareholding became public knowledge - he asked users whether they believed that free speech was essential to a functioning democracy and whether Twitter adheres to this principle.

Cornell University's assistant professor Alexandra Cirone thinks this is evidence he may use his new stake "to try to influence Twitter practices" and for a "more active play in the social media eco-system".

But others see more immediate issues with his musings.

Howard Fischer, partner at law firm Moses & Singer, told Reuters that, given he had already bought a stake in Twitter, these questions could be seen as a form of market manipulation. "I do suspect the SEC is going to look long and hard into whether they can bring manipulation charges, along with the failure to file," he said.

Mr Agrawal is clearly watching his every move. In response to his edit button poll, which currently has 2.6 million responses, he urged voters to do so "carefully".


"The consequences of this poll will be important," he said, echoing the exact same words Musk used after he launched his free speech Twitter poll.

Jack Dorsey had always rejected the idea, and critics point out that it could allow people to fundamentally change the meaning of tweets after they have been shared.

It would be a big change for Twitter to include an edit button, and Musk is clearly keen to be part of that conversation.

Many wishing to join Trump's new Twitter have found they are on a waiting list


For a while last month, it looked as if Musk was intent on building a new social media platform as a rival to Twitter - and there he does have precedent from another prolific and controversial tweeter.

Donald Trump, who was banned from Twitter in January 2021 after the Capitol riots, announced last autumn that he was launching his own social network - dubbed Truth Social - to "stand up to the tyranny of big tech".

But six weeks after its launch, there is a waiting list of 1.5 million who are unable to use it - with the platform branded a disaster by Joshua Tucker, director of NYU's Center for social media and politics.

According to Reuters, two key executives quit after the troubled launch.

For those with shares in Musk's many other businesses - Space X, Tesla, Neuralink, The Boring Company - there will doubtless be a sigh of relief that he didn't go down the same route as Mr Trump.

But there will also be concerns that he has yet another passion project to distract him from the serious business of running his established firms.

Not to mention the issues that might now be raised about the Twitter deal by the SEC.

Social media expert Casey Newton points out that it is not the first time a big tech firm has eyed Twitter. Microsoft chief executive Steve Ballmer once bought a four percent share of the company "and essentially did nothing with it," he writes.

But he goes on to say that Ballmer never tweeted like Musk did: "gleefully, annoyingly, constantly".

And it seems most likely that it will be from this Twitter account that Musk will let the world know what he intends to do next.

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×