Tesla CEO, Elon Musk has dissolved Twitter’s board of directors, ceding control over the social media platform to himself. Following the multi-billionaire’s purchase of the company last week, the company now has a chief executive after months of negotiations. He has made a significant impact on the company, which is used worldwide by members of the political and press communities.
Musk announced on Monday that he will serve as CEO of Twitter, the social media company he just purchased for $44 billion. Last week, Musk fired Twitter’s previous chief, Parag Agrawal, and other top company officials.#musktwitter #TwitterTakeover #TwitterBlue #ELONMUSK #Musk pic.twitter.com/OGCeBuMsde
— Live News Now (@LiveNewsNow6) November 1, 2022
He is considering reforming Twitter’s accounts verification process and cutting jobs. Twenty-five percent of the company’s employees could be affected by the first round of cuts under consideration, according to the Washington Post. The BBC News requested information from Twitter regarding the report, but Twitter did not respond. Several senior executives have already been removed, as Musk has brought in several high-profile allies.
A filing with the US Securities and Exchange Commission on Monday indicated that Twitter co-founder Jack Dorsey had rolled his entire shareholding, worth about $978 million based on the buyout price of $54.20, into the new private company. He was a supporter of Musk’s acquisition of Twitter after he left the board of directors in May.
Twitter’s Chief Meme Officer
“In my opinion, Elon is the only solution I believe in. It is my mission to support his mission to extend consciousness,” he said in a tweet following the approval of the takeover by the former management team of the company. A technology investor by the name of Jason Calacanis has changed the bio of his Twitter account to “chief meme officer” and states that he has been “hanging out at Twitter a bit during the transition.”
Taking to the social media site, he asked for feedback on a variety of topics, including advertising and video production. Aside from asking how much people would be willing to pay to become verified, Calacanis speculated that Twitter may charge a $20 monthly fee for the blue ticks that indicate verified accounts. Within a short period of time, Musk responded to a Twitter user asking for the platform to delete inactive accounts that have been inactive for more than a year, saying “definitely”.
Tesla’s founder and CEO Elon Musk have changed his Twitter handle to “Chief Twit”. Another filing on Monday indicated that he is now the sole director of Twitter. In addition to Bret Taylor, a former chairman of the board, Parag Agrawal is also one of the nine directors who have been expelled. A BBC inquiry led to no response from Baroness Martha Lane Fox, current president of the British Chambers of Commerce, who will be removed from the board under the merger agreement.
National Security Concern
Despite widespread criticism, Musk’s takeover of Twitter has drawn widespread attention, as he plans to make changes to how the platform moderates the spread of information from sources such as state media, politicians, and celebrities. During the presentation, Musk stated that the company would establish a new council to govern these decisions. There would be no further changes at this time.
A statement released on Monday by Senator Chris Murphy, a Democrat, stated that he had asked the government to examine the deal’s national security implications. Saudi Arabia holds a significant stake in the company, and its relationship with the United States has become increasingly tense. “Murphy wrote on Twitter that we should be concerned about Saudi Arabia’s ownership of a major social media platform, a country that is clearly interested in repressing political speech and influencing US policy.
We should be concerned that the Saudis, who have a clear interest in repressing political speech and impacting U.S. politics, are now the second-largest owner of a major social media platform.
There is a clear national security issue at stake and CFIUS should do a review.
— Chris Murphy (@ChrisMurphyCT) October 31, 2022
CFIUS (the Committee on Foreign Investment in the United States) should investigate this matter because it involves a national security concern. Approximately $13 billion in debt financing, as well as Musk’s own financial resources, were used to finance Musk’s takeover. Analysts believe that the increase in debt will have a constraining effect on the firm, which has had difficulty growing its user base and has not generated a profit for the past few years.
Some of the Most Significant Changes Musk Could Make
$20 for Profile Blue Tick Verification
Twitter Blue, which currently costs just under five dollars each month, could be required for verified users, The Verge reports. Verified users would lose their blue checks if not paid, and the price would go up to around $20 a month. “We are currently redesigning the entire verification process,” Musk tweeted on Sunday.
Musk Plans to Fire Almost 75% of Workforce
The Washington Post reported that Musk intends to fire about seventy-five percent of the 7,500 employees at his new company.
A recent acquisition by Elon Musk of Twitter Inc. for $44 billion involved Wall Street bank loans in combination with shareholders who agreed to roll over their interests in the social media service in exchange for a stake in the new private company. The company has now attracted a new group of top investors, following its delisting last week after almost a decade as a public company.
The Announcement to Form a New Content Moderation Council
In the past, Musk has condemned Twitter’s content moderation policies as heavy-handed, and his frequent postings have prompted some advertisers to take note, given Twitter’s primary revenue source is advertising. A content moderation council was formed to ensure that the site would not become a “free-for-all hellscape.”