Analysis-Now comes the hard part for Elon Musk, Twitter boss. By Stocksak

© Stocksak. In this illustration, a 3D printed Twitter logo can be seen in front a displayed Elon Musk photo. This illustration was taken October 27, 2022. REUTERS/Dado Ruvic/Illustration

By Sheila Dang

(Stocksak). Overspending Twitter Inc The easy part was buying (NYSE:) for $44 Billion

Now, Elon Musk, Telsa Inc chief executive, must prove that Twitter is worth 10x that amount and turn around a social network platform that he has spent months mocking.

An outspoken billionaire declared earlier this month: “Myself and other investors are clearly overpaying Twitter right now.” I believe that Twitter’s long-term potential is a lot greater than its current value.

Musk has not shared any concrete details of his plans. His statements seem implausible or contradictory.

According to former and current Twitter employees, analysts, and investors who were considering funding the deal, here’s what Musk, the self-proclaimed “Chief Twit”, has in store.


Musk’s biggest bet draws inspiration from China’s greatest hits in the 2010s. Musk tweeted earlier this month, “Buying Twitter is an accelerant for creating X. The everything app.”

With companies like WeChat in Asia, the idea of an all-in-one app, also known as a “super app”, was born. Users can send messages and make payments, shop online, hail taxis, and make payments. Users who were limited in choices, such as those in regions where Google, Facebook (NASDAQ 🙂 and others are blocked, found the all-in-one app appealing.

According to a source briefed on this matter, Musk has stated to investors that he plans to create a premium subscription to reduce reliance upon ads, allow content creators make money, and enable payment.

There are no super-apps available in the United States, because the barrier is high. However, there are many options for apps, according to Scott Galloway. He is the co-host and professor of marketing at New York University.

Apple Inc (NASDAQ) and Alphabet Inc (NASDAQ) Inc’s Google control the app stores for Android phones and iPhones. They consider themselves to be super apps and are unlikely to allow other super applications to develop, Galloway stated. As an example of barriers to entry, consider Apple’s recent rejection to Spotify (NYSE:).

Jason Goldman, a former Twitter board member, stated that it was impossible at this stage in the evolution of mobile internet.


Stocksak spoke to former and current employees. He said that Musk’s plans for lowering the guard rails on all social media platforms would result in a flood of hateful, harmful, and possibly illegal content on Twitter. Already, it has had difficulty identifying and removing child porn.

Employees fear that members of Twitter’s trust-and-safety team, which includes content moderators and content editors, will be among Musk’s worst job cuts.

One employee said, “Imagine a world in which all those people are gone.” It’s going to be hellscape.


Musk tweeted, “I hate advertising” in 2019.

On the eve of the deal’s expected closing, he appealed directly to advertisers in an open-letter tweet:  “Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!… Twitter aspires be the most respected advertising platform worldwide that strengthens and grows your brand.

Advertisers don’t buy it.

They point out Musk’s plan for reopening the account of former U.S. president Donald Trump as a significant impediment to spending money via Twitter. Twitter has permanently suspended Trump to avoid further incitement of violence following the Jan. 6, 2021 attack on the U.S. Capitol.

Trump’s return could alienate liberal-leaning and moderate users. This could lead to major household brands being pushed away by major household brands, who aim to market products to people across the political spectrum.


Musk has made it clear that he will protect freedom of speech, but he has also been more open to dialogue with global leaders who seek to limit Big Tech.

Musk stated in a tweet that he had agreed to the European Union’s digital media regulation. This will make it more difficult for Big Tech to combat illegal content. It could also lead to fines up to 6% of global revenues. This is one of the most severe ways to regulate content online.

Asia’s regulators are also enforcing their legal stances against social networking platforms and ordering the removal any content they deem illegal. This includes speech by political dissidents.

India’s Twitter has waged a “sophisticated struggle” with the government to protect free speech online. This battle would be at risk if Musk is in charge, Goldman stated.

Goldman, an ex-member of the Twitter board, said that Tesla (NASDAQ)’s growing business in China, where it generated $14 billion last year, could also pose a threat to Twitter.

“The idea that he’s going to be the one liaising with the Chinese government and potentially turning over information on users, that’s very scary,” Goldman said. 

Twitter has experts who review government data requests, but Musk has spoken contemptuously of these experts.

Goldman stated that Trump’s return on the matter is a parlor game. “But what’s really going to happen is that an IP address of a dissident will be dropped on floor.”

News Source and Credit

Stocksak Editorial

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