Elon Musk announced a 9% stake purchase from Twitter in April 2022. A few weeks later, he announced plans to buy the company for $44 billion in a deal expected to close by the end of the year.
Since the news was announced, Twitter's stock price has remained relatively flat. In addition, Tesla's stock price dropped after Musk's deal was made public because he funded it with his shares.
Many digital marketers believe the acquisition will not help Twitter compete with other social media sites. Still, they are unsure whether they should be concerned about how it will affect their social media strategies.
To help you understand how Twitter's takeover by Tesla CEO Elon Musk could affect your business, Digital Resource, the leading marketing agency in Miami, is here to help!
If Twitter is to be improved, Musk believes it must remain a privately held company. This view is shared by Twitter co-founder and ex-CEO Jack Dorsey, who recently tweeted that the internet company "has been owned by Wall Street and the ad model."
Twitter is "the digital town square where matters vital to humanity's future are debated," Musk said in a statement released following the Twitter deal. He also expressed excitement about the company's "tremendous potential."
Despite the unanimous approval of the board of directors, the sale still needs shareholder and regulatory approval. According to CEO Parag Agrawal, the deal should be finalized within the next three to six months.
"Free speech" has been used to justify Musk's acquisition of Twitter. It's unclear what he wants to change about Twitter, but in the past, the social media platform has come under fire for what some have called "censorship."
Recently, he has indicated that Twitter's content moderation policies will be relaxed and that efforts to rid the platform of bad actors who violate the service's guidelines will be scaled back.
Moderating content is one area of interest for Musk, but it is by no means his only one. As far as Twitter is concerned, the following are what he plans to do next:
Along with the four previously mentioned, Musk recently tweeted the following changes that he wishes to implement:
It's also possible that he has other plans for change that we're unaware of.
Elon is the world's richest man, so if this deal goes through, it will be one of the most significant single purchases of a technology company by an individual person in history.
In comparison, Microsoft announced this year its intention to acquire Activision Blizzard for $69 billion, which was considered a massive deal— and that's, you know, Microsoft. Unlike this one individual.
Twitter is a popular social media platform that has a significant cultural impact on people's lives. This deal has gotten more attention than a deal with a less consumer-oriented company would have.
Musk's content moderation ideas (or lack thereof) could have a real-world impact on the world. We've learned the hard way that Twitter can influence global politics.
It appears that Musk's comments about Twitter indicate that the issues are specific to Twitter. Each social media platform has its own unique set of technical problems.
It is a constant struggle for social media platforms to keep their users interested and to maintain features that give them an advantage over their competitors.
So, what does this mean for marketers?
A Search Engine Land survey found the answer to that question.
For 58.4 percent of marketers, changes like account verification, bot removal, and free speech are among the main reasons Musk's ownership of Twitter is valuable.
A free and open exchange of ideas and information, says one respondent, "has no negative implications for brands." On the contrary, "brands should be proud of this development."
"Twitter ads have never worked well for us, so any change feels like a good change," another respondent said.
However, 41.6 percent of marketers are concerned about Musk's ownership of Twitter, citing brand safety, fewer users, and "free speech" (which many believe is code for "hate speech") as the main factor.
Then there's the "nothing will change" department. Some responses were difficult to categorize other than "harsh, but not incorrect."
According to one respondent, "Twitter's value as a platform for message distribution and engagement has changed significantly over the last five years. It's still a valuable tool sometimes, but its impact has waned in others."
As a whole, the sale of Twitter represents a significant shift in digital marketing. All of us will be affected at some point.
When? No one knows.
But one thing is sure: Musk has a successful track record of investing in and managing well-known and profitable companies such as Paypal and SpaceX.
Only the future will tell if Musk can unlock Twitter's full potential!
It's unclear whether brands and marketers will continue to invest time and money in Twitter under Musk's vision.
Social media is constantly changing. But it can also increase revenue and customer retention, as well as aid in the creation of a more positive customer experience.
When every platform is now so noisy, it may seem impossible to "cut through the noise." But niche targeting and implementing a trustworthy and relatable approach are possible options.
At Digital Resource, we believe that the key to a successful social media strategy is recognizing that audiences are more than just a collection of names and faces.
To succeed in the long run, campaigns must be based on something more than a fleeting phenomenon. Find out how Miami's leading digital marketing agency can help you and your company.
Contact us today for a free consultation!