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.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
White House Eyes Budapest for Peace Talks
Cave Diving Beneath the Streets of Budapest
Another American Restaurant Chain Opens in Budapest
Hungarian Opposition Politician Supports Ukrainian Commander
Opposition Leader Threatens Media Outlets
American Airlines Adds New Flights to Budapest
F1 Hungarian Grand Prix Wraps Up
WhatsApp is rolling out a feature that looks a lot like Telegram.
U.S. Trade Representative says Washington still negotiating trade deals after court rules tariffs illegal
Von der Leyen says Europe drawing up 'precise' plans to send troops to Ukraine
Kremlin accuses Europe of hindering Trump’s peace efforts in Ukraine
×