What to Make of Elon Musk’s Purchase-Up of Twitter Shares

We’re definitely residing in fascinating instances.

After just lately criticizing the management of Twitter, and specifically, the platform’s transfer away from free and open speech within the app, billionaire Tesla proprietor Elon Musk has right this moment purchased 73.5 million shares in the company, price near $3 billion, instantly making him the biggest Twitter shareholder.

Musk now owns 9.2% of the corporate, and whereas his stake is ‘passive’ – i.e. Musk doesn’t acquire a board seat or voting rights – hypothesis now could be that Musk may look to make a much bigger transfer, and take extra energetic management of the corporate within the close to future.

What would that imply?

As famous, Musk has just lately taken to Twitter to criticize the corporate’s strikes to limit free speech. Late final month, Musk shared this ballot along with his 80 million Twitter followers.

Musk additionally famous that ‘the consequences of this poll will be important’, with out qualifying these remarks.

Following on from this, Musk questioned the function that Twitter is now enjoying in democracy, and raised the potential for creating his personal social community.

Musk has had a sophisticated relationship with Twitter over time, with the billionaire’s off-the-cuff tweets usually touchdown him in hot water with the SEC and different regulatory authorities. Musk additionally has a historical past of sharing seemingly random memes and ideas, which given his public standing, has result in confusion, and even concern at instances for his psychological state.

Living proof – Musk just lately challenged Vladimir Putin to a bodily battle for the destiny of Ukraine.

Musk has additionally been a vocal critic of varied authorities insurance policies, together with immigration reforms, COVID response measures and taxation proposals. And given his statements on Twitter’s strikes to limit sure speech, it’s potential that Musk want to go additional in such feedback.

However would easing Twitter’s rules be an excellent factor? Would it not be extra helpful for society, as Musk stipulates, if Twitter had been to permit extra misinformation, and take a step again from seeking to curb regarding actions and tendencies?

Twitter’s most notable motion on this entrance got here when it banned former US President Donald Trump from its platform for sharing feedback that might incite violence.

Musk had ideas on this as effectively:

So clearly, Musk has opinions on the way in which that perceived tech censorship goes – however absolutely a $3 billion funding is about greater than merely enacting your personal will in your favourite social media platform, and letting extra controversial content material filter by. Proper?

In fact, $3 billion for Elon Musk just isn’t a good portion of his internet price, besides, from a enterprise perspective, you’d assume that Musk has some angle right here, a possible pathway to re-igniting Twitter’s progress and maximizing that funding.    

Twitter’s already below stress on this entrance after buyers from Elliott Administration Group bought up Twitter shares in 2020 with a view to pressure Twitter administration to up its sport, and enhance income efficiency on the firm. That possible led to Jack Dorsey’s decision to step down late last year, whereas Twitter can also be nonetheless being held to its ambitious revenue and user growth targets carried out as a part of the Elliott push.

Possibly, Musk sees potential past this, and a method to assist stimulate Twitter progress even additional, and make it an much more vital a part of the media panorama.

Many have envisioned the identical, with Twitter, a minimum of to some, failing to capitalize on its alternatives – whereas by comparability, Meta has continued to develop and develop effectively past Twitter’s tempo.

Twitter and Fb had been as soon as on related tempo. Possibly there’s a solution to deliver that again into view, and construct Twitter into one thing even larger, and extra influential, inside our broader communicative course of.

Or perhaps Musk will merely look to spice up Twitter’s share worth by his involvement and curiosity, earlier than promoting out for a revenue. Twitter shares rose more than 28% after Musk’s stake was revealed, and perhaps that’s the top sport right here, one other troll from Musk to make much more cash.

That appears much less possible, however with Elon Musk, nobody actually is aware of for positive.

However what do know is that issues are set to grow to be much more fascinating in Twitter’s board room over the approaching months. Watch this house.