Politics targets Elon Musk – support from Donald Trump

new York After the takeover by Tesla boss Elon Musk, Twitter was even more targeted by politicians. Former US President Donald Trump, previously banned from Twitter, now sees Twitter “in sensible hands”. He wrote on Friday on his new online platform Truth Social.

He left open whether he would return to Twitter after the takeover. His account had been permanently banned after Trump supporters stormed the Capitol in the final days of his tenure in early 2021. But he believes that Truth Social looks and works better: “I love Truth,” Trump wrote ambiguously. The English “Truth” means “Wahheit” in German.

“I’m very glad that Twitter is no longer run by radical left-wing weirdos and crazy people who really hate our country,” Trump wrote. Twitter must now work hard to rid itself of all the bots and fake accounts that have damaged the online service. “It will be much smaller, but better.”

Musk had reportedly fired Vijaya Gadde, the top executive responsible for Trump’s ban, in addition to the chief executive officer and chief financial officer. She was responsible for fighting hate speech and false information at Twitter.

Top jobs of the day

Find the best jobs now and
be notified by email.

“The reason I bought Twitter is that having a common digital marketplace is important to the future of civilization,” Musk said on Twitter. The platform aims to “discuss a wide range of beliefs in a healthy manner”. He didn’t buy Twitter “to make more money”. Instead, he wants to “help humanity that I love,” Musk said.

EU insists on compliance with laws

EU Internal Market Commissioner Thierry Breton also insisted on Twitter on Friday that European rules should be observed. Breton responded to Musk’s tweet “The bird is free” with his own message: “In Europe, the bird will fly in compliance with our EU rules.” With the abbreviation DSA, Breton alluded to the recently passed Digital Services Act of the EU, which to strengthen consumer rights on the Internet.

The federal government also declared on Friday that it wanted to monitor developments on Twitter “very closely” after Musk’s takeover.

Musk has repeatedly described himself as a “free speech absolutist”. At the same time, he declared on Friday night that Twitter “must not become a hellhole in which everything can be said without consequences!”. Under his leadership, Twitter will abide by the law.

During his tenure as US President, Trump preferred to explain his policy through countless tweets. In the wake of the $44 billion takeover tug-of-war, Musk said he would reactivate Trump’s account. On his own platform, Truth Social, Trump has only a fraction of the 89 million followers who subscribed to him on Twitter.

Managers say goodbye

Several board members and top managers said goodbye to the platform on Twitter. In addition to Chief Executive Officer Parag Agrawal, those laid off include Chief Financial Officer Ned Segal and General Counsel Sean Edgett. If Twitter is no longer listed, the platform will have to publish significantly less information, and Musk can also dissolve the board of directors.

“I’m grateful for the opportunity to work with such an incredible group of people,” Segal tweeted. Board member Martha Lane Fox also said goodbye and thanked the dismissed executives for “leading with incredible integrity and diligence”.

Some active Twitter employees also publicly said goodbye to their previous managers. Musk is expected to lay off numerous employees. The new owner posted a photo showing him talking to Twitter employees. Musk did not confirm reports that he had promised investors that almost three quarters of the 7,500 employees would be cut.

Strategy question open

It was also unclear on Friday in which direction Musk wants to steer the platform after the $44 billion takeover. The Bloomberg agency had reported, citing an insider, that Musk wanted to take over the post of head of Twitter, at least for the transition. However, there was no confirmation of this until Friday afternoon (local time).

Musk changed his profile description to “Chief Twit” on Twitter. The ousted CEO, Agrawal, initially did not comment on his dismissal.

One thing is clear: Twitter is unlikely to become a cash cow that quickly recoups Musk’s takeover expenses, even under his leadership. Above all, the reduced sales in the advertising market, which are currently affecting all major tech companies, are cutting Twitter’s profits. The platform had failed in recent years to diversify its revenue side, which consists of more than 90 percent from advertising money.

In addition, as part of the deal with Musk, Twitter has committed to taking on $13 billion in additional debt, further narrowing its financial leeway. Analysts estimate that Twitter will have to pay a billion dollars in interest per year in the future.

There is skepticism among analysts as to whether Twitter will quickly find its way onto the road to success. “The deal resembles a leveraged takeover, with Twitter incurring a massive debt load that will hamper any investment in the platform,” wrote Raj Shah of consulting firm Publicis Sapient. Musk would have to spend millions more to achieve his goals with the platform.

And the damage done to the brand is likely to drive users off the platform, which Shah said may derail Musk’s plans to launch a paid subscription. There is a way to real added value if Twitter is turned inside out into an “all-in-one app”, modeled on WeChat in Asia.

Losses in Tesla shares

Twitter shares are suspended from trading due to Elon Musk’s takeover, ending its trading history at a closing price of $53.70. They were well below the record high of more than $77 in February 2021. Twitter is now to be delisted quickly: The New York Stock Exchange wants to delist the papers by November 8th.

The takeover was not well received by Tesla investors. The papers of the electric car manufacturer lost 3.6 percent in the meantime. The fact that Musk could also take over the post at Twitter, at least temporarily, could mean that the billionaire can spend less time on the carmaker’s problems, such as the criminal investigation by the US Department of Justice.

The legal risks for Musk have not ended even after the zigzag course in the Twitter takeover has been completed. In November, Tesla investor Richard Tornetta is scheduled to hear a lawsuit against Musk in the same Delaware court where Twitter and Musk had been arguing for months.

Tornetta claims Musk was overcompensated at Tesla in his capacity as CEO and largest shareholder. Tesla board members have allowed Musk to freely negotiate his own compensation and withheld key information about the process from investors.

“This could be a very important case in terms of executive compensation,” said University of Pennsylvania law professor Jill Fisch. Judge Kathaleen McCormick will conduct the hearing. She had already overseen the litigation with Twitter and given Musk the crucial deadline for the takeover this Friday.
With agency material.

More: Elon Musk takes control of Twitter – chief executive fired

source site-16