Who can stop Musk’s “disorderly expansion”?

Musk’s capital has been “disorderly expansion”.

Tesla founder and CEO Elon Musk bought a 9.2% stake in social media company Twitter on April 4, according to a filing with the U.S. Securities and Exchange Commission (SEC). The move made Musk Twitter’s largest outside shareholder, and it unexpectedly surged nearly 27 percent, its biggest intraday gain in more than four years.

According to the Twitter announcement, Twitter will appoint Musk to its board of directors — Musk will become a Class II director whose term expires at the company’s annual shareholder meeting in 2024. In addition, Twitter has reached an agreement with Musk that its stake will not exceed 14.9%. Twitter CEO Parag Agrawal tweeted that Musk is exactly what we need. Musk will bring tremendous value to our board. Musk replied that he was looking forward to working with Parag and the Twitter board to make significant improvements to Twitter in the coming months.

Musk’s storied life and Twitter’s importance in overseas public opinion made this matter a thousand waves. Why does Musk, who already has several jobs, “add drama” to himself? What does Twitter mean to him? How will Musk’s entry affect Twitter? Musk’s “disorderly expansion” keeps going forward, who can stop him?

Who can stop Musk's "disorderly expansion"?

More free and open social media?

This is a pre-publicized “yang conspiracy”.

A week before the start, on March 25, Musk tweeted a poll: Do you think Twitter adheres to the “Free Speech” principle? The question drew more than 2 million votes, with 70.4% of voters saying Twitter’s current practices were “unqualified.” The next day, Musk, who received the voting results, asked everyone on Twitter: “Do you need a new platform?”

The answer is yes. Judging from past behavior, Musk has a high probability of changing some of the content mechanisms of Twitter in the future.

“We believe that one of Musk’s primary motivations may have been to influence Twitter’s moderation policy, which he has frequently criticized as being too restrictive, ” Jefferies analyst Brent Hill wrote in an investor note. Before Musk joined the board, Bank of America analyst Justin Post also said in a note to clients that Musk’s involvement could lead to a change in content policy.

The driving force behind these changes is Musk’s dissatisfaction with the current state of Twitter. Musk is known to be a libertarian, but the openness of free speech on Twitter has not met his demands. At this point, Trump, who was banned by Twitter, may resonate with Musk, but Trump did not choose to buy Twitter, but re-created a social platform “Truth Social” (truth social).

Who can stop Musk's "disorderly expansion"?

Musk

Some advertisers are worried about Musk’s arrival, worrying that Twitter will be too “open” and repeat the tragedy of many years ago – the explosion of Twitter users in 2007, but the troll problem intensified in the following decade, such as actors Leslie Jones left Twitter after a string of racist hate speech attacks and death threats, and it wasn’t until 2017 that Twitter began adopting methods such as updating community rules, algorithmic identification and human moderation. sub-problem.

Any loosening of content restrictions could be counterproductive for advertisers, said Brian Wieser, global president of business intelligence for GroupM, part of advertising giant WPP. “Advertisers don’t want their brands to be associated with promoting rebellion or hate and harm, they don’t want to be associated with an online environment that could be toxic to users.”

For the full year of 2021, Twitter’s revenue will be US$5.08 billion, a year-on-year increase of 37%, of which advertising service revenue will account for more than 80%.

Crypto heaven?

Some are worried, some are happy. Advertisers may not be happy, but the currency circle still has confidence in Musk.

Musk has been standing up for cryptocurrencies:

  • April 2019. At that time, the official account of Dogecoin launched a vote on Twitter to select the CEO of Dogecoin, and Musk was elected with a high vote. Later, Musk tweeted that Dogecoin is his favorite digital currency, and modified his Twitter account information to “Former CEO of Dogecoin.”
  • In January last year, Musk’s Twitter account profile changed to “bitcoin.” After Musk changed his Twitter profile, Bitcoin rose by $800 in a short-term, and the price was once quoted at $32,758 per piece.

Now, Musk’s transformation of Twitter will also spread from content to products to the field of cryptocurrency.

In January, Twitter, under the leadership of a new CEO, announced the availability of NFT profile pictures. Musk then strongly criticized and said publicly: “Twitter’s move is both annoying and a waste of engineering resources.”

A few days ago, Musk “announced” that he was seriously considering building a new social media platform. YouTube encrypted broadcaster Steven Steele responded that whether Musk bought Twitter or created his own platform, he would definitely make this new social media platform support dogs. Coin (DOGE) tip function.

Musk then responded with “100 points,” hinting that he might do so.

Who can stop Musk's "disorderly expansion"?

And after Musk’s Twitter stake was revealed, crypto community user @Pranay Pathole asked him to fix the crypto spam bots on Twitter because these bots were really annoying and suggested improvements to the Twitter verification system. Musk said: Indeed, this is also the most annoying question he personally finds on Twitter.

According to Decrypt, Twitter this month released a report on the biggest trends of the past two years, and the financial industry, including cryptocurrencies, topped the list of attention on its website. In the past three months alone, Twitter users have posted nearly 300 million tweets about cryptocurrencies, according to the report. Twitter users are 3.2 times more likely to consider investing in cryptocurrencies than those who are not on Twitter, Jeff Melei, Twitter’s director of financial services, said in a blog post.

The influence of Twitter on cryptocurrencies can be imagined . After the announcement of Musk’s stake in Twitter, Dogecoin has also risen sharply in the past two days and hit a new two-month high.

Who can stop Musk?

Musk used his life to interpret “love to fight to win” and “gambler is stronger”. But his furious horse in fresh clothes has always had mixed reputations. Musk’s Twitter journey, I am afraid it will not be smooth sailing because of money.

It was mentioned at the beginning that Twitter had reached an agreement with Musk that its stake would not exceed 14.9%. Why this number? Delaware, where Twitter’s legal home is located, makes it difficult for investors with more than 15 percent ownership to launch a hostile takeover of a company, providing management with modest protections. At the same time, it also makes people have reservations about Twitter’s attitude. Although Musk’s actions have brought about a long-lost surge, Twitter may not be so welcoming to the arrival of this Internet celebrity, at least not everyone welcomes him.

Inside Twitter, a palace fight drama is brewing. On one side is Musk and Twitter founder Jack Dorsey, and on the other is the current CEO, formerly CTO Parag Agrawal.

Twitter founders and former CEOs Jack Dorsey and Musk are arguably a type of “god man” who never plays cards according to common sense. In 2018, he suddenly sent an email to all employees late at night, encouraging them to work from home and “never use the company”, when there was no new crown epidemic. And after the new crown epidemic, he wants to move Twitter to Africa.

Other Twitter shareholders want to squeeze out Jack Dorsey, and Musk has not forgotten to tweet to support Dorsey-“I support Dorsey to continue as CEO, he has a good heart.”

In November last year, Dorsey resigned and CTO Parag Agrawal took over. Musk then PS a set of cartoon mockery on Twitter – comparing Parag Agrawal to Stalin and Jack Dorsey to Yezhov who was purged.

In the blink of an eye, Musk and Parag Agrawal are “getting together”, and even Jack Dorsey can’t help but say: “The combination of Parag Agrawal and Musk will be an incredible team.”

There are no permanent enemies, only permanent interests. Does the Internet really have no memory? Or are the waves more choppy under the calm water? Another Twitter shareholder, “Sister Wood”, is outspoken. Musk is sending a strong signal to the new CEO that Musk’s stake in Twitter may open the door to the company’s management reshuffle.

At present, Parag Agrawal is not Musk’s opponent in terms of strength or power.

Who can stop Musk's "disorderly expansion"?

Musk taunts Parag Agrawal

Externally, the SEC is also giving Musk a headache.

In the previous 2018, in the context of Tesla’s stock price being shorted and continuing to decline, Musk suddenly announced through Twitter that he would take Tesla private, and even gave a specific acquisition price of $420. Immediately following the tweet, Tesla shares skyrocketed, leading to heavy losses for shorts. However, later investigations revealed that Musk had not negotiated the source of funds for his privatization at all. The CEO of a listed company rashly announced major transaction news on a social platform, which obviously did not meet the regulatory requirements for information disclosure. The SEC has therefore launched an investigation into Musk.

In February 2019, Musk tweeted again, saying that “Tesla hasn’t built any cars in 2011. But 8 years later, Tesla’s production will reach 500,000 in 2019.” The SEC’s complaint alleges that “Musk did not seek or obtain pre-approval prior to posting this tweet, which was false and disseminated to more than 24 million members of the public.”

And this time around, Musk’s disclosure of his investment in Twitter could intensify tensions between him and the SEC. “He did not disclose his 9.2% stake on a form in a timely manner. If investors bought more than 5% of a company’s shares and did not intend to seek control, they must submit this form.” Foreign media A lawyer in the report commented: “Musson’s disclosure problems may damage his ongoing legal battle with the SEC.”

Joining Twitter’s board puts Musk under the SEC’s magnifying glass once again.

Of course, Musk is not without opponents-although Musk is the richest man in the world, he is not the only rich man in the world. In such an important public opinion position as Twitter, Musk may also usher in other powerful enemies. We can take a wild guess that if left-leaning billionaires like George Soros or Michael Bloomberg start buying shares in Twitter too, it won’t be economics explained.

And if Musk continues to influence Twitter with his dramatic actions, Twitter may also become a Meme Stock whose value and price are dislocated, and emotions outweigh strength.

In an interview with the American magazine “60 Minutes” many years ago, Musk proudly said: “You express your personality with your hairstyle, and I, with Twitter.” – Now this sentence is both metaphorical and literal. , has become a reality. Who can stop him? Apparently Twitter can’t.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/who-can-stop-musks-disorderly-expansion/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-04-05 23:17
Next 2022-04-05 23:18

Related articles