Elon Musk Buying Twitter: Will the Sale Still Go Through?
In the social media world, there have been few bigger stories in 2022 than Elon Musk buying Twitter. Since the platform’s founding in 2006, Twitter quickly rose to prominence as a social media juggernaut. Originally designed as a “micro-blogging” platform, Twitter allowed celebrities, politicians, and everyday users to share their thoughts in a consolidated, yet witty, format.
However, Twitter also faces long-standing criticism for its interaction with user data and increasing spam accounts. Additionally, politicians and business leaders (particularly right-leaning) called its support of free speech into question. After initially becoming a partial owner of Twitter, Elon Musk rearranged his plans to buy the entire company as a whole. However, not unlike many of Elon Musk’s other publicized notions, this, too, seemingly came to a halt.
SEC Investigating Elon Musk Buying Twitter
While Elon Musk buying Twitter dominated headlines, various other media outlets pointed out the obvious: Musk’s ongoing issues with the Securities & Exchange Commission (SEC). Infamously, Elon Musk settled fraud charges with the SEC in 2018. a little over a month-and-a-half prior to the settlement, Musk tweeted that he could take Tesla private.
Not only did this seriously disrupt the market, but Tesla also realized a stock jump of more than 6%. Additionally, Tesla lacked controls to ensure that Musk’s tweets contained accurate information in the first place. These events led to him stepping down as Tesla’s Chairperson, along with paying $40 million in penalties.
Fast-forward to the announcement of the anticipated Twitter purchase, and Elon Musk failed to submit the required paperwork to the SEC in a timely fashion. By law, Elon Musk disclose to the SEC that he owned more than 5% of Twitter’s shares. Unfortunately, he submitted the disclosure 11 days late. After he did so, the SEC announced that they’d be investigating the late submission, stalling the purchase.
‘Twitter Bots’ Holding Up the Deal
While the SEC investigation plays a large role in holding up Elon Musk from buying Twitter, there is a second issue on the table. Over the years, spam accounts grew widespread across every major social media platform. Twitter is no different. Referred to as ‘Twitter Bots’, these disingenuous Twitter handles disseminate inaccurate information.
The big hang-up surrounds Twitter’s estimation of how many bots remain on the platform. Twitter CEO Parag Agrawal publicly stated that fewer than 5% of Twitter’s accounts are fake or spam. Meanwhile, Elon Musk alluded that he believes that number actually exceeds 20%. Moreover, Musk claims that his initial purchase offer was based on that 5% estimate.
Many see this as an attempt to back out of the very public deal. In fact, Elon Musk faces a $1 billion breakup fee if he cancels the deal at this point in time. Alternatively, this could be a negotiation tactic to lower the purchase price. Regardless, the deal remains in limbo.
Implications of Elon Musk Buying Twitter
Elon musk buying Twitter forever alters the social media landscape. Although Elon Musk promotes the purchase as an attempt to stand up for free speech, having the richest man in the world call the shots on one of the most powerful social media platforms raises serious ethical dilemmas.
Twitter remains active hub for activists and other communities spread across the country. In addition, the platform publicly stood against hate speech and disinformation over the recent years. Having said that, Elon Musk intends to follow local laws regarding Twitter content moderation.
One of the biggest downsides would be the policy that lawyers deem “lawful but awful”. Many countries around the world support weaker human rights laws. Not only would this tactic support the silencing of political opponents, but it would also potentially lead to hate speech returning in full form.
Looking Ahead to the Ongoing Purchase
The story of Elon Musk buying Twitter stays firmly in global news headlines. Last week, Elon Musk publicly addressed Twitter staff. During the discussion, he reiterated his desire to allow “legal speech”, which may reopen opportunities for hate speech, cyberbullying, propaganda, and political silencing.
Although, the policy provides ample room for concern, the purchase still needs to go through first. To launch your social media marketing strategy, book an Intro Conversation with the digital advertising and branding specialists at Rizzo Young Marketing LLC.