The Drama story of Elon Musk buying Twitter
Bisnis
In the world of tech and business, few figures are as polarizing or influential as Elon Musk. Known for his ventures like Tesla and SpaceX, Musk is no stranger to making headlines. But when he set his sights on acquiring Twitter, the social media platform where he had built his persona as both visionary and provocateur, the world watched a drama unfold with twists and turns worthy of a Hollywood thriller. What began as a casual interaction with a platform he often used to stir debate quickly morphed into a full-blown saga that captivated not just Silicon Valley, but global business, politics, and media.
Elon
Musk’s purchase of Twitter wasn’t just about business—it was about power,
influence, and the future of free speech in the digital age. This drama,
complete with betrayals, lawsuits, walk-backs, and unexpected twists, shows how
one of the most ambitious men of our time wielded his influence in a way that
has left the world both in awe and disbelief.
The
Proposal – Musk Makes His Move
The
drama began in April 2022, when Elon Musk revealed he had quietly amassed a
9.2% stake in Twitter, making him the largest individual shareholder. The move
came as a shock to many, as Musk had long been one of Twitter's most prominent
users and critics, often voicing his displeasure over what he saw as the
platform’s excessive content moderation policies. Musk, the self-proclaimed
"free speech absolutist," saw Twitter as fundamentally broken, and he
believed he could fix it.
Shortly
after disclosing his stake, Musk was invited to join Twitter’s board of
directors—a logical step for a significant shareholder. But in a surprise
twist, Musk declined the offer just days later. His refusal hinted at a much
larger play, and that play came on April 14, 2022, when Musk made an audacious
offer: he would buy Twitter outright for $44 billion, offering $54.20 per
share.
The
offer stunned the tech and business worlds. Twitter’s board was thrown into
chaos, unsure how to respond. Musk had framed the acquisition as an opportunity
to create a more open platform, one free from what he saw as censorship. “I
believe in its potential to be the platform for free speech around the globe,”
Musk said. It wasn’t just about business; it was about ideology, power, and, in
Musk’s own words, "civilizational importance."
But
many within Twitter, including its leadership, viewed Musk’s offer with
suspicion. They saw him as a mercurial billionaire with little understanding of
the complexities of running a global platform that must balance free speech
with the safety of its users.
Resistance
– Twitter Fights Back
Twitter’s
board didn’t immediately fold to Musk’s offer. Instead, they implemented a poison pill strategy, a legal mechanism
designed to prevent hostile takeovers by diluting the company’s stock. This
move bought the board some time to weigh their options, while also signaling to
Musk that they weren’t willing to sell Twitter without a fight.
Behind
the scenes, Twitter’s executives and legal team began exploring ways to fend
off Musk’s advances. The board was torn—many executives feared that Musk’s
leadership would lead to chaos, both internally and externally. Some of
Twitter’s employees were also deeply concerned about Musk’s influence,
particularly his views on content moderation and free speech. Many feared that
under Musk’s leadership, Twitter would become a haven for disinformation,
harassment, and hate speech.
But
Musk was undeterred. On April 21, he revealed that he had secured $46.5 billion
in financing to fund the takeover, including $21 billion of his own money. This
escalation left Twitter’s board with little choice. On April 25, 2022, after
weeks of back-and-forth negotiations, Twitter’s board accepted Musk’s offer to
buy the company for $44 billion. But the story was far from over.
Cold
Feet – Musk Tries to Back Out
As
soon as the deal was agreed upon, the drama took another unexpected turn. In
the months following the agreement, Musk began to express concerns about
Twitter’s data on spam bots—automated accounts that spread misinformation or
malicious content. Musk alleged that Twitter had vastly underreported the
number of bots on the platform, suggesting that up to 20% of Twitter’s accounts
could be fake.
On
May 13, 2022, Musk tweeted that the Twitter deal was "temporarily on
hold" until he could verify the accuracy of Twitter’s user numbers. This
bombshell announcement sent Twitter’s stock price plummeting and threw the
acquisition into uncertainty. While Musk claimed his concerns about bots were
valid, many saw his sudden shift as a case of buyer’s remorse. Was he looking
for an excuse to back out of a deal that had quickly become less attractive
amid a broader downturn in tech stocks?
Twitter
wasn’t having it. The company’s leadership insisted that the bot issue had been
fully disclosed during negotiations, and they were adamant that Musk could not
walk away from the deal. As Musk continued to delay and question the data,
Twitter’s board took the unprecedented step of suing Musk in Delaware’s Court
of Chancery on July 12, 2022. The lawsuit sought to force Musk to complete the
acquisition, accusing him of trying to sabotage the deal after entering a
legally binding agreement.
For
the next few months, the situation devolved into a legal showdown. Both sides
traded barbs publicly and in court filings. Twitter’s lawyers accused Musk of
damaging the company with his erratic behavior, while Musk’s team insisted that
Twitter had misled him. The court set a trial date for October 2022, with the
outcome of the entire deal hanging in the balance.
The
Twist – Musk Reverses Course
Just
when it seemed that the saga would be settled in court, Musk threw another
curveball. On October 4, 2022, Musk announced that he would proceed with the
acquisition after all, dropping his legal fight and agreeing to buy Twitter at
the original price of $44 billion. The sudden reversal stunned both Twitter and
the broader business world. Why had Musk changed his mind?
While
no definitive answer has been provided, many speculated that Musk’s legal team
had advised him that he was unlikely to win in court. Delaware’s courts are
known for upholding merger agreements, and Musk faced the very real possibility
of being forced to buy Twitter anyway, but with the added cost of legal fees
and damage to his reputation.
With
the legal drama now in the rearview mirror, the focus shifted back to Musk’s
takeover of the company itself. On October 27, 2022, the deal was officially
completed, and Musk became the owner of Twitter. His first action? Arriving at
Twitter’s headquarters carrying a sink and tweeting, “Let that sink in!”
The
Aftermath – Chaos Unleashed
Once
Musk took control of Twitter, the drama only intensified. In his first week as
owner, Musk fired several top executives, including CEO Parag Agrawal, CFO Ned
Segal, and legal head Vijaya Gadde, in a decisive move to reshape Twitter’s
leadership. Musk dissolved the board of directors, taking complete control of
the company.
Then
came the layoffs. In a stunning move, Musk slashed Twitter’s workforce by
nearly 50%, letting go of thousands of employees in a single stroke. Engineers,
content moderators, and entire teams were cut as Musk attempted to streamline
operations and reduce costs. The mass layoffs created an atmosphere of
uncertainty within the company, as employees scrambled to understand their
future and the platform’s ability to function with such a diminished staff.
Meanwhile,
Musk began experimenting with product changes, some of which caused immediate
backlash. His plan to revamp Twitter’s verification system by offering
"blue check" status for a monthly subscription fee of $8 caused
confusion and chaos. The move led to a flood of impersonation accounts, as
users paid for verification and posed as celebrities, companies, and even Musk
himself. The experiment backfired, forcing Musk to suspend the new system and
rethink his approach.
Critics
argued that Musk’s vision of a more open, less moderated Twitter was leading to
an increase in hate speech, disinformation, and harassment. Musk’s changes to
content moderation policies, combined with the mass layoffs of moderators, led
to concerns that the platform would become an even more toxic environment.
Advertisers began pulling out, wary of the platform’s new direction.
The
Future – Uncertainty Reigns
As
of 2024, Elon Musk’s Twitter remains a work in progress. While he has delivered
on some of his promises—such as greater transparency in the platform’s
algorithms and a focus on free speech—the company continues to grapple with the
consequences of his sweeping changes. Twitter's financial situation remains
precarious, with advertisers hesitant to return and users divided over the new
direction of the platform.
Musk
has expressed interest in turning Twitter into a "super app," akin to
China’s WeChat, that would offer everything from messaging and video content to
payments. Whether he can achieve this lofty goal remains to be seen. The
platform’s future is uncertain, and Musk’s leadership continues to polarize
users and advertisers alike.
One
thing is clear: Elon Musk’s acquisition of Twitter has reshaped the platform in
ways no one could have predicted. The drama, chaos, and uncertainty that have
marked Musk’s tenure at Twitter reflect his larger-than-life persona—brilliant,
erratic, and unafraid to take huge risks. Whether Musk’s Twitter will thrive or
crash spectacularly is still anyone’s guess, but the story is far from over.
The
future of Twitter under Elon Musk's ownership remains a topic of intense
speculation and debate, as Musk's leadership has already brought about
significant changes. Since his acquisition in October 2022, Musk has made it
clear that he intends to transform Twitter into something far more expansive
than a social media platform. While his ambitions are lofty, the platform faces
considerable challenges in achieving his vision. Here’s a closer look at some
possible directions Twitter could take under Musk’s leadership, along with the
key factors that will likely shape its future.
1.
Twitter as a “Super App”
One
of Musk’s most ambitious goals is to turn Twitter into a "super app,"
similar to China’s WeChat, which combines messaging, payments, shopping, and
entertainment into one platform. Musk has hinted at building an
"everything app" that could integrate social networking with
financial transactions, e-commerce, video, and more.
For
this to happen, Twitter would need to develop new features such as:
- Payment systems: Musk has already introduced
the idea of allowing peer-to-peer payments on Twitter, potentially using
cryptocurrencies like Bitcoin or Dogecoin.
- E-commerce: Twitter could become a
marketplace where users can shop, order services, or conduct business
transactions.
- Media and Entertainment: Twitter could expand into
areas like video streaming or hosting live events, making it a more
comprehensive entertainment platform.
However,
achieving this vision will require significant technological upgrades,
partnerships, and a rethinking of how Twitter operates. Competing with
established platforms in these areas, such as PayPal (payments), YouTube
(video), and Amazon (e-commerce), would be an uphill battle, but Musk’s track
record in disrupting industries makes this vision plausible.
2.
Decentralization and
Open-Source Models
Musk
has also discussed making Twitter’s algorithms more transparent, allowing users
to see how content is prioritized or suppressed. One idea is to move toward a
more decentralized model, possibly allowing users to choose between different
content moderation rules or algorithms.
A
decentralized Twitter could give users more control over their experience and
reduce accusations of bias in content moderation. Musk has mentioned the idea
of using blockchain technology to create a more open platform, though how this
would work on a large scale remains unclear.
Such
an approach could align with Musk’s philosophy of reducing centralized control,
giving users greater autonomy. However, the risks are that it could fragment
the user experience and complicate moderation, especially in managing harmful
content.
3.
Free Speech and Content
Moderation
Musk’s
acquisition was motivated by his belief that Twitter should be a global
platform for free speech. Since taking control, he has rolled back some of the
platform's content moderation policies and reinstated previously banned
accounts, including high-profile figures like former U.S. President Donald
Trump.
While
this shift toward greater free speech has been welcomed by some, it has also
raised concerns about an increase in harmful content, including hate speech,
disinformation, and harassment. Musk has said that Twitter will not tolerate
illegal content or incitement to violence, but finding a balance between free
speech and ensuring user safety will be a challenge moving forward.
If
Musk pushes for a more lenient approach to content moderation, it could attract
a wider range of voices but also drive away advertisers and users who want a
safer online environment. Some advertisers have already expressed concerns
about the direction of the platform, leading to reduced ad revenue for Twitter.
4.
Monetization and Subscriptions
One
of Musk’s key focuses since taking over Twitter has been finding ways to reduce
the platform’s reliance on advertising, which has traditionally been its
primary revenue stream. He has introduced subscription services like Twitter Blue, where users can pay for premium
features, such as the coveted blue verification checkmark.
Musk
may continue to explore more subscription models, including exclusive content,
enhanced user tools, or even ad-free experiences. He has also floated the idea
of offering subscriptions to businesses for additional features or access to a
larger audience.
This
shift toward monetization could diversify Twitter’s revenue streams, but it
also risks alienating users who are accustomed to free services. The success of
such initiatives will depend on how attractive these new offerings are and
whether they provide enough value to justify the cost.
5.
AI and Innovation
Given
Musk’s involvement with AI through his ventures like Tesla and OpenAI, there’s
potential for Twitter to integrate more artificial intelligence and machine
learning features. This could manifest in smarter algorithms, better content
filtering, and more personalized user experiences.
For
example, AI could help Twitter manage content moderation more efficiently by
detecting hate speech or misinformation in real-time. AI could also be used to
enhance user recommendations, helping people discover content that matches
their interests.
At
the same time, there are ethical concerns with AI-driven platforms, especially
when it comes to bias and accountability. Musk himself has warned about the
dangers of unchecked AI, so balancing innovation with responsibility will be
critical.
6.
Rebuilding Trust with
Advertisers
One
of the most pressing challenges for Twitter under Musk’s ownership is
rebuilding trust with advertisers. After Musk’s takeover and his initial
changes to the platform, many advertisers paused or reduced their spending on
Twitter, fearing the impact of more relaxed content moderation and chaotic
internal changes.
Musk’s
decision to drastically cut Twitter’s workforce, including key departments such
as content moderation and sales, compounded these concerns. Without strong
advertiser support, Twitter faces a significant revenue gap that subscription
models alone may not be able to fill.
For
Twitter to thrive, Musk will need to find ways to reassure advertisers that the
platform is a safe place for their brands while maintaining the free speech
ethos he champions. This may involve restoring confidence through new advertising
policies, better content controls, or partnerships that offer more transparent
reporting and metrics for advertisers.
7.
Internal Stability and Talent
Retention
One
of the key factors in Twitter’s future success is the company’s internal stability.
Musk’s initial leadership saw a mass exodus of employees, including engineers,
designers, and key executives. While the layoffs were framed as cost-cutting
measures, they also created internal disruption that affected Twitter’s ability
to operate smoothly.
Rebuilding
Twitter’s workforce, particularly in technical and content moderation roles,
will be essential for maintaining platform reliability and security. Musk will
need to attract top talent and create a culture that fosters innovation and
loyalty, which could be a challenge given the chaotic early months of his
leadership.
8.
Competition from Other
Platforms
Twitter
is facing increasing competition from other social media platforms, especially
as Musk’s changes create opportunities for alternatives to capture
disillusioned users. Platforms like Mastodon and Bluesky have positioned themselves as
more decentralized and user-focused alternatives to Twitter, attracting users
who are concerned about the direction Musk is taking.
Additionally,
major platforms like Facebook, Instagram, and TikTok continue to dominate the social media landscape,
offering more integrated experiences with vast user bases. To maintain its
relevance, Twitter will need to innovate and find its niche, whether through
its super app aspirations or by becoming the go-to platform for free speech and
public discourse.
Conclusion:
A Drama for the Ages
The
story of Elon Musk’s Twitter acquisition will go down in history as one of the
most dramatic and unpredictable corporate takeovers of all time. It’s a tale of
ambition, power struggles, legal battles, and high-stakes decisions that has
captivated the world. Musk’s desire to shape the future of communication,
combined with his unorthodox leadership style, has turned Twitter into a
battleground for ideas about free speech, platform governance, and the role of
social media in modern life.
As
the drama continues to unfold, one thing remains certain: Elon Musk’s journey
with Twitter has only just begun, and the world will be watching closely to see
what happens next.