Background Information about Twitter and Elon Musk
Twitter is a popular social media platform founded by Jack Dorsey, Evan Williams and Biz Stone in 2006. With over 330 million monthly active users, it is one of the biggest social media platforms in the world, offering people from all over the globe the possibility to communicate with each other, share interesting content and information, or even engage in actual news coverage. Elon Musk, born in South Africa in 1971, is an entrepreneur and inventor, best known for his companies Tesla Motors, Space Exploration Technology and The Boring Company. He is also Chairman of SolarCity, which is providing solar-powered solutions.
Rumours of an Acquisition
Back in October 2020, rumours began to surface that tech entrepreneur and inventor Elon Musk was planning to buy Twitter. The news came shortly after multiple senior executives from the social media platform reportedly left the company, sparking speculation of a possible acquisition. Reports suggested that Musk was interested in bringing Twitter into the Tesla family, which would help him to gain control over a social media platform that has become a staple for millions of people all over the world. But, whilst these rumours showed promise, no actual deals were made.
Reactions of Potential Buyout
The potential acquisition received a mixed reception from the public. Many people expressed excitement at the thought of the hugely successful entrepreneur taking on such a large platform, whilst others expressed concern over a potential violation of freedom of speech. The reactions were mixed even within the tech industry, with some experts claiming that Musk’s acquisition of Twitter would be beneficial for the platform and its users, while others expressed concerns about a potential damage to the company’s reputation.
Elon Musk Denying the Rumours
Despite the widespread rumours, back in October 2020, Tesla CEO Elon Musk made a statement on the microblogging site denying any interest in buying Twitter. He stated that there was “absolutely no truth” to the speculations and reassured his followers that he was not about to acquire the social media platform. The comments also ended speculation about a possible partnership between the tech mogul and the social media platform.
The Challenge of Decreasing Users
Twitter has been facing shrinking user engagement levels in recent years, and the potential acquisition by Musk may have been seen as a way to bring new life to the platform. A fall in monthly active users is one of the issues that Twitter has been facing in recent years, with the total count of monthly active users falling by 8 million between October 2019 and October 2020. But, with no acquisition being made, Twitter will have to look for new ways of engaging its users.
The Impact of COVID-19 on Twitter
Although 2020 was a difficult year for almost all businesses, due to the coronavirus pandemic, Twitter fared better than most. The lockdowns and social distancing measures had a positive effect on the microblogging platform, with the share price increasing by around 50% in 2020, as well as a 14% increase in monthly active users. What’s more, Twitter witnessed an increase of over 20% in online ad revenue during the year, thanks to the growing number of people logging on to the site.
The Pros of Tesla Acquiring Twitter
If Elon Musk had acquired Twitter, it could have implied a lot of advantages for both the entrepreneur and the popular social media platform. On the one hand, acquiring Twitter would have given Musk the opportunity to take advantage of the platform’s huge user base and potential ways of monetization. On the other hand, with the help of Musk, Twitter could have increased user engagement, as well as other potential benefits, such as the integration of Tesla’s own technologies into the platform.
The Cons of Tesla Acquiring Twitter
Although the potential acquisition of Twitter by Elon Musk could have brought many benefits to the platform, it could also have caused some unwanted obstacles. Firstly, the huge number of users belonging to Twitter means that there is always a risk of data breaches. Therefore, with the acquisition, Elon Musk would need to ensure that all data is stored securely, without the possibility of a breach. Moreover, with the tech mogul taking over the platform, there could be a risk of a higher number of censorship incidents, thus causing concerns about freedom of speech.
Twitter’s Current Situation
Although no acquisition was made by Elon Musk, Twitter is still standing as a popular social media platform. Along with other user-generated content websites, the microblogging site has become an important source of news and a means of communication for millions of people. Moreover, despite the decrease in the total number of users in 2020, the social media platform has seen an overall improvement in user engagement levels.
Twitter’s Strategies Going Forward
With the news of Elon Musk not buying Twitter, the platform’s future strategies will likely remain unchanged. In order to keep up with the competition, though, Twitter has already announced a series of initiatives, such as consumer products and a hosted subscription platform. By taking these initiatives, Twitter hopes to stay competitive and keep attracting more users to its microblogging website.
The Influence of Elon Musk on Social Media Platforms
Despite not buying Twitter, Elon Musk still remains an important figure in the tech industry and has a profound influence over social media platforms. For example, when the San Francisco-based entrepreneur announced that he would be deleting his platform, there was a significant drop in the price of Tesla shares. Furthermore, the tech mogul has a powerful influence on users and can make or break trends on social media platforms. For instance, when Elon Musk shared his opinion about a cryptocurrency, the price of the currency changed instantly.
The Future of Twitter
It seems as if Elon Musk will not be buying Twitter anytime soon, as the tech mogul continues to deny the rumours. Despite that, Twitter has remained a popular social sharing site, despite not being able to attract new users during 2020. Going forward, however, it needs to look for new strategies in order to stay competitive. Whether or not the microblogging site will look to Elon Musk for help remains to be seen.
