Twitter Elon Musk Acquisition: What Now?
So, Elon Musk finally put pen to paper and bought Twitter. This is probably the highest-profile business deal of 2022.
Long regarded as 'broken', Twitter had fallen into a bad place under previous CEO and founder Jack Dorsey. Users regularly complained of too much spam, counterfeit accounts, and automated reply bots making the platform impossible to use, especially in a business context.
And so, Elon Musk decided to step into the fray with an audacious $44 billion bid. Although initially rejected, it was finally inked on 27 October.
Let's look at what motivated the Twitter Elon Musk purchase, and what the future may hold for the much-maligned platform.
Twitter Elon Musk deal
Twitter currently has around 450 million monthly users, with some 237.8 million 'monetizable' daily users. The USA is its most prolific market. Around 24% of all US adults (79m) have accounts, with 40% of all Twitter users aged between 18 and 29, according to research.
Facebook remains the world's largest social networking site, based on user engagement. Twitter languishes at the bottom of a long list, below even the freeware instant messaging app Kik.
This massive user base with declining engagement goes some way to explain Musk's motivation and desire to transform Twitter into the 'de facto public town square'.
Elon Musk is a prolific Tweeter. His average of 16.8 tweets a week compares to the 11.55 from 'similar accounts' (presumably CEOs with large social media presence). Frequent use of the platform may explain the desire behind the Twitter Elon Musk deal, alongside wanting to, in his words, 'help humanity'.
In the three weeks after the deal completed, as promised, a lot happened. First, Musk has committed to firing much of the workforce, with the remaining employees encouraged to quickly 'build and launch new products'. Secondly, Musk removed the requirement that users validate their accounts in return for the blue check mark.
Instead, users can purchase this authentication for a monthly fee of $7.99. This encountered myriad problems and, consequently, Musk postponed the rollout until 29 November to 'make sure it is rock solid'.
This may give us an indication of where Twitter could head in the not-too-distant future. The monetization of social media platforms is a hot topic, with many viewing it as an inevitable step in developing the medium.
It is well known that Elon Musk has a strong association with the popular cryptocurrency Dogecoin. Indeed, other than buying a brand-new Tesla, Dogecoin is now accepted by a growing number of online and in-store merchants, including GameStop, AMC Theatres, and Twitch. With this information in mind, many believe it has become only a matter of time before Twitter becomes monetized.
Social media monetization has been widely discussed in recent years. It is a concept that spans a wide variety of formats depending on the platform, use case, and audience. Monetization is a huge area and would signify a step change for the industry.
The potential for users to generate income from their content or producers and suppliers of goods and services to utilise an inbuilt platform payment system has fascinated the crypto world for many years.
However, for this to become a reality, platforms like Twitter and Facebook need the right micropayment processor for their needs. When you are processing thousands of transactions per minute, it is essential that you not only have the network capability to handle that amount of traffic, but it is also imperative that transaction fees are kept to a minimum.
With this in mind, the close relationship between Twitter, Elon Musk, and Dogecoin becomes a little clearer. It points a clear path toward the future for both social media and distributed ledger technology.
Author: Brendan Beeken
Moni Talks Founder and Chairman Brendan Beeken is an entrepreneur, commercial strategist, investor, and philanthropist. He writes on a wide range of subjects, including cryptocurrency, decentralised finance, blockchain, business advice, and professional wellbeing, for news and business websites, as well as Latest Moni and his personal site, brendanbeeken.com. Brendan draws from his own research and more than two decades of personal experience in business to offer a unique insight, perspective, and commentary on diverse subjects. He is passionate about making the cryptocurrency space more accessible and encouraging safer and more responsible trading and investing. Brendan's LinkTree is https://linktr.ee/brendanbeeken.