[Twitter Acquisition] "Let My Critics Stay"… Musk Envisions the 'Big Picture' of Freedom of Expression

[Image source=Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] "Yesss!!!"

This was Elon Musk, the world's richest person and Tesla CEO's first tweet immediately after news broke on the 25th (local time) that he had successfully acquired Twitter. The image he posted alongside included a statement from Musk in the official announcement saying, "I want to make Twitter better than ever."

Now, the market is focusing on how 'Musk-style Twitter' will change. Many questions arise, from whether he will restore the account of former President Donald Trump, who was permanently banned, citing 'freedom of expression' as the reason for the acquisition, to how he will expand Twitter's revenue and user base, which heavily depends on advertising.

◇How Will Twitter Change?

Since it was revealed on the 4th that Musk had become the largest shareholder of the social media platform Twitter, he has repeatedly hinted at systemic transformations. A key example is his plan to take the company private after acquisition. This transition would reduce pressure from shareholders and make it easier to implement service changes by avoiding government oversight and regulation.

On the system side, significant changes in content management policies are expected. Compared to other social media, Twitter has relatively led efforts to block fake news and hate speech, but going forward, it is anticipated that content censorship and intervention will be minimized in line with Musk's principles.

When reports emerged that the negotiation was nearing completion, Musk tweeted, "I want even my worst critics to remain on Twitter. That is what freedom of expression is." This is also why the possibility of restoring former President Trump's account has been continuously mentioned in connection with this acquisition.

Additionally, Musk confirmed plans to introduce an open-source algorithm and remove 'bots' that post spam and fake news. Earlier this month, he even conducted a public survey asking, "Do you want an edit button?"

The business model is also inevitably set to change. Musk has clearly stated his intention to reduce the number of advertisements, which are the main source of income. He said, "If we rely on advertising to survive, the power of companies that influence (Twitter) policies will grow," and proposed a shift to a subscription economy model.

◇Musk’s Five Challenges

The market is full of questions. From content censorship standards to the global trend of tightening regulations, business revenue structure, internal turmoil, and market skepticism, Musk faces many hurdles.

There are immediate concerns about the extent of the freedom of expression Musk advocates. With Twitter’s daily users numbering around 217 million, there is a risk that harmful content, including fake news and hate speech, could spread extensively.

Musk’s actions may also clash with the global trend toward stricter social media regulations. The European Union (EU) imposes fines of up to 6% of revenue on platform companies that fail to properly manage harmful content under the Digital Services Act. Bridget Todd, Secretary-General of the women’s rights group Ultraviolet, argued, "Regarding platform content rules and means to ban users who violate them, Twitter could set a dangerous precedent for other social media."

Whether Musk’s plan to reduce advertising will succeed from a business perspective is also critical. Twitter has failed to turn a profit eight times in the past decade. The Guardian reported, "Twitter shareholders have long been concerned about the company’s revenue and user growth." Currently, over 85% of Twitter’s revenue is estimated to come from advertising.

Calming internal unrest caused by rapid changes and alleviating market skepticism are also Musk’s tasks. Some speculate that a large-scale employee exodus could occur during the transition to Musk’s leadership. The New York Times (NYT) pointed out that Twitter employees receive more than 50% of their total compensation in stock options, and that taking the company private could reduce their actual salaries.

The market also views Musk’s unpredictable behavior as a risk. Politico raised "several important questions" about Musk’s acquisition, asking what role a person with such personal influence should play and what Musk truly wants. The NYT noted uncertainty about whom Musk will appoint as Twitter’s management and how he will intervene in service operations, mentioning that Musk also runs Tesla, SpaceX, the neurotechnology startup Neuralink, and the underground tunnel transportation infrastructure company The Boring Company.

◇Trump: "I Won't Return to Twitter"

Meanwhile, former President Trump said in a Fox News interview on the same day, "I like Musk very much, but I do not plan to return to Twitter," adding that he will use 'Truth Social,' which he leads. However, the stock price of Digital World Acquisition Corp (DWAC), a special purpose acquisition company (SPAC) set to merge with Truth Social, plunged 15% intraday.

This content was produced with the assistance of AI translation services.