After the acquisition plans
Elon Musk considers Twitter allegations
Elon Musk had previously indicated that he thought a subscription model would be better for Twitter. He now promises that professional users may be asked to pay. Musk is rumored to want to bring the service back to the stock market in a few years.
Tech billionaire Elon Musk has confirmed that after taking over Twitter, he wants to rely more on a subscription model for the online service. “Twitter will always be free for casual users, but it may cost a little for commercial / government users,” he tweeted Wednesday night.
The 50-year-old boss of the Tesla electric car company wants to take over Twitter and accuses the short message service of restricting freedom of speech on the platform too much. Musk has agreed a deal worth about $ 44 billion with Twitter’s board of directors, but he is dependent on enough shareholders to give him their shares. Twitter and Musk aim to complete the acquisition later this year.
The entrepreneur’s planned acquisition had sparked some excitement last week, not least in the group itself. On Friday, Twitter CEO Parag Agrawal had to placate his employees at a company-wide meeting. In the background is the fear that the announced purchase by the Tesla boss will lead to layoffs and pay cuts. Twitter has always cared for its employees and will continue to do so, the CEO reassured.
Twitter is already testing subscription models
Twitter currently earns almost exclusively from advertising, mostly in the form of tweets, which companies can inject into users’ news stream for money. Musk had already written before the start of his takeover attack that he found subscription models for services like Twitter better and that the focus was wrong because it gave big companies too much power. There is always tension between advertisers and online platforms, for example when extreme posts appear next to which they don’t want their products to be placed.
Twitter is already experimenting with subscription business models in its Blue offering, available in the United States among others. Among other things, Twitter Blue customers can edit finished tweets for up to 30 seconds. Tweet series are also displayed more legibly and there is the option to organize saved tweets into folders. The subscription costs $ 2.99 per month in the United States. There was also evidence that Twitter could charge for its Tweetdeck software, which makes using the service more convenient and ad-free.
In online business, free services like Facebook and Google, which do their business with user information-based advertising, have clearly prevailed over subscription models. Years ago, Twitter’s paid alternative App.net failed.
Musk plans to remove Twitter after the acquisition. He argued that this was the only way for the service to realize its full potential as a platform for free speech. According to the Wall Street Journal, he announced to potential investors that Twitter could be back on the stock exchange in a few years. Musk mentioned a three-year period, the paper wrote Tuesday, citing informed people.
Can Donald Trump Return to the Platform?
Musk filed a $ 46.5 billion loan for the deal. Of that, $ 25.5 billion is loans, some of which must be secured with the shares of he Tesla. He wants to raise up to $ 21 billion himself. According to the media, Musk is trying to win over partners as financial investors. They could cash in later if Twitter went public again.
One of the big questions surrounding Musk’s pledge of free speech is whether former President Donald Trump could return to the platform. He was banned after expressing sympathy for his supporters who stormed the Capitol in Washington on January 6, 2021. In previous weeks, Trump had fueled sentiment with unsubstantiated claims that an election victory over Joe Biden had been stolen for fraud. Trump said he didn’t want to go back to Twitter, even though he could. The presence on the platform, where he once had more than 80 million followers, could be important for a possible presidential candidacy in 2024.