The world changed last night as Elon Musk completed his acquisition of Twitter.
Why it matters: One of the most influential communication platforms is now in the hands of an unpredictable leader.
A quick catch: The nearly eight-month saga ended Thursday night, a day before today’s court-ordered deadline.
Big picture: While dismissing the idea in the past, Musk has now reportedly named himself CEO of Twitter and is expected to quick decision.
- His handling of the account suspension was the most anticipated.
- Musk has said he intends to limit the permanent ban and believes in making Twitter a safe haven for free speech, raising concerns about hate speech and growing divisions.
- Musk also announced today that Twitter will set up a content moderation committee that “will not make major content decisions or account recovery” until it convenes. tweet“Anyone suspended for minor and suspicious reasons will be released from Twitter jail.”
Reality Check: Ads account for almost all of Twitter’s revenue, Advertisers are closely watching Musk’s next move.
- GM told CNBC on Friday that it will temporarily suspend paid advertising on Twitter while it learns “the direction of the platform under new ownership.”
- Musk has been aware of the risk, writing to advertisers on Thursday that “Twitter clearly cannot be a free hellscape.”
What to watch: Bloomberg Business Credit Correspondent Paula Seligson this morning at twitter space dialogue.
- She pointed out that if he acted like one, he would have to slash costs and increase revenue.
- According to Seligson, Twitter’s debt load has grown from about $2 billion to more than $13 billion, with future annual interest payments of $1.2 billion, more than 12 times what it is now.
bottom line: For Musk to make Twitter successful and increase its value so that it can be sold again to public investors someday – it’s in his interest to keep content “brand safe” for advertisers.
- Their insistence on funding his Twitter vision is critical, possibly in the form of a super app.