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You're Reading:Elon Musk & Twitter – Business or Show?

Elon Musk & Twitter – Business or Show?

by Tasos

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Apr 12, 2022

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A few days ago, I discussed that the social media world is shaking up.

And we experienced some really big surprises ever since.

For example, Elon Musk, founder, CEO, and chief engineer at SpaceX; early-stage investor, CEO, and product architect of Tesla, Inc.; founder of The Boring Company; and co-founder of Neuralink and OpenAI, took a 9.2% stake in Twitter Inc. to become the platform’s biggest shareholder, a week after hinting he might shake up the social media industry.

But there is more going on. 

Is Elon doing business, giving a show, or both?

Elon Musk & Twitter | Business or Show?

Elon Musk-Twitter-stake

Image by FoxBusiness

It’s a Game

On Feb 07, Evannex published an article on InsideEvs discussing rumors about Elon building his own social media platform.

According to Matt Wallace at Benzinga, “There is massive, growing demand for Elon Musk, Tesla’s CEO, to make his own social media platform. Tweets I have made about it are being met with overwhelming engagement and positive attention.”

Elon Musk has already hinted to his 70 million+ Twitter followers that such a platform may be in the works. 

But Elon got involved in what’s happening in Ukraine right now.

On Feb 27, Spiegel reported that Elon is helping Ukraine out with internet via satellite.

Russian forces destroyed Ukrainian infrastructure. The digital minister has therefore asked Elon Musk for help – and this is now coming from orbit.

We’ve seen him post a very interesting tweet on Mar 25.

It was actually a poll…

Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?

The answers: 30% yes, 70% no.

On Apr 04, CNBC reported that Twitter shares close up 27% after Elon Musk takes 9% stake in social media company.

Musk owns 73,486,938 shares of Twitter, which represents a 9.2% passive stake in the company, according to the Securities and Exchange Commission 13G filing released Monday.

The stake is worth $2.89 billion, based Twitter’s closing price Friday.

The Musk buy comes less than two weeks after Musk criticized the company, polling people on Twitter about whether Twitter adheres to free speech principles.

Outspoken Tesla CEO Elon Musk purchased a giant stake in Twitter that makes him the largest outside shareholder in the social media stock, not long after criticizing the company for what he said was its failure to uphold the tenets of free speech.

The news was followed by rumors that Twitter was about to appoint Elon to the board of directors the next day.

On the same day, Apr 05, NewYorkPost tweeted that Twitter users urge Elon Musk to reinstate Donald Trump’s account.

And a funny one by Damon imani.

On April 11, DailyMail reported that Musk is planning a hostile takeover of Twitter after he filed amended SEC paperwork indicating that he will criticize the firm and demand change.

Elon Musk, 50, last week was revealed to be the biggest shareholder in Twitter, having bought a stake worth 9.2 percent – four times that of founder Jack Dorsey

Musk was due to join the board of the company on Saturday but decided not to, CEO Parag Agrawal said on Sunday.

Agrawal said he thought Musk’s decision was ‘for the best’ and said the company must remain focused on its corporate goals 

He did not say why Musk would not join, but suggested that shareholders had expressed concern

On Monday, Wall Street analysts alleged Musk declining board membership could lead to a hostile takeover of the company

‘I don’t think anything is off the menu with this guy,’ one said

‘This is clearly going to be an unfriendly situation,’ added another.

What does it mean for us?

As I analyzed in previous articles, Facebook and Twitter had lost market share and specifically, Twitter had lost its rhythm, if you will.

People got very excited due to this acquisition and the game between Elon Musk and Donald Trump.

People need to be entertained and this is the role of a social media platform, to deliver entertainment mainly.

Of course, there are reasons people join social networks, to socialize, educate themselves, fight, and so much more.

But without entertainment, social media is dead.

Elon shed light on a blurry environment.

I believe we will be witnessing more and more surprises in the social media world going forward and this is good news.

Let’s see what happens with Trump’s platform, TruthSocial, I’m waiting for the Android version and if it can compete with Twitter.

Now, all this sounds like a game. Elon did not buy Twitter to become more wealthy. 

He does not need more money.

But he may need some entertainment too.

Plus, he was active on Twitter.

And maybe he needed more exposure and publicity, who knows.

Maybe he was guided by others to proceed with this acquisition.

Time will tell!

One thing is for sure, social media is changing and the platforms that are going to dominate the market are those that deliver superior experiences. Davids can beat Goliaths easier than ever before.

That’s it, another article has finished, here on Web Market Support. I am waiting for your comments and thoughts. Till next time.

Tasos Perte Tzortzis

Tasos Perte Tzortzis

Marketing Consultant, Creator of the "7 Ideals" Methodology

Although doing traditional business offline since 1992, I fell in love with online marketing in late 2014 and have helped hundreds of brands sell more of their products and services. Founder of WebMarketSupport, Muvimag, SummerDream.

I enjoy reading, arts, science, chess, coffee, tea, swimming, Audi, and playing with my kids.

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