In their latest performance update, Twitter gained 12 million users. But a social media agency Hong Kong highlights that the platform’s subscription revenue dropped down to $94 million. It was a 31% YOT decline. For a digital marketing speaker Hong Kong, such a number shows that Twitter needs a major revamp. Even if the platform strengthened its video ads and campaigns, a video marketing agency Hong Kong noted that there is still a lot of work to be done.
The world was shocked that in a matter of less than one month, Elon Musk acquired Twitter. First, he became the largest Twitter stakeholder by buying 9.8% of shares last 5th of April. He was even offered a board seat but did not accept it. After a week, he made an offer to buy Twitter, Inc. It was then accepted by Twitter 3 days after the offer. So, what can we expect after Elon Musk’s takeover of Twitter?
WHO IS ELON MUSK?
One of the greatest innovation entrepreneurs of the 21st century is Elon Musk. He is a co-founder of PayPal, a financial technology company in the United States. He is also a co-founder and the CEO of Tesla, a global manufacturer of electric cars. In 2002, Elon Musk is on the brim of bankruptcy when he founded Space X. But NASA founded the project with $2.9 billion. It was an advanced space exploration targeting to provide space flights. Just recently, a Space X rocket ship carried a crew of four astronauts for a 10-day mission into space.
Elon Musk is also famous for being an extremist on social media, especially on his Twitter account. He openly criticized the US government’s lockdown restrictions during the COVID-19 outbreak. His tweet “FREE AMERICA NOW” stirred conversations on the legality of lockdown as an infringement of people’s freedom. After Donald Trump was banned from Twitter last year, Elon Musk started attacking Twitter for the censorship of free speech. The attack continued until he became the largest stakeholder on the platform. Then, the big surprise happened! Elon Musk is now the owner of Twitter.
WHAT TO EXPECT AFTER ELON MUSK TAKEOVER OF TWITTER?
On the last 25th of April, Twitter accepted the richest person in the world’s offer to buy out the company for $44 billion. Twitter will then become a private company. It means that the platform will have less financial and operational transparency. Twitter’s landscape could dramatically change as Musk suggested major changes for the social media platform.
Impact on Investors and Shareholders
Once Elon Musk’s acquisition of Twitter closes, its investors and shareholders will receive an influx of cash as their individual shares will be paid $54.20 each. Investors who do not have Twitter stocks, especially on other social media companies like Meta, the parent company of Facebook, Instagram, Messenger, and WhatsApp, will experience a rippling effect. The influence and power of Elon Musk can pressure these companies to perform better as the competition level up.
Impact on Twitter Users
Expect that Twitter, being influential in public discourse, will get stronger. As an advocate of free speech, he plans to open-source Twitter’s algorithm to make it more authentic and trusted by the public. The platform may also enact a variety of changes. These include the edit button, where Twitter users can go back and change the tweet that they have already posted. It is also possible that users may need to submit extra information to be allowed on the platform.
For now, it is difficult to say what will possibly happen to Twitter. But one thing is clear! Everybody is hoping for the better as Elon Musk takeover Twitter.