|Tesla and SpaceX Boss: Elon Musk|
Although the completion will take months, but strong funding from Morgan Stanley seems to be a guarantee of success of the operation. The deal also includes a one-billion-dollar penalty that he - or Twitter - must pay if one of them backs down. And Twitter's lawyers have further protected themselves with so-called "performance-specific" clauses, which could theoretically force Musk to buy the company even if he threatens to withdraw (but even those clauses could be completed with penalties).
While waiting to find out if Elon Musk will actually buy the platform and what he wants to do with it, his tweets follow one another, the latest series with advice for investors: Elon Musk's path to turning Twitter into a cash machine where anyone can say anything could be a steep climb, at least according to experts. The $44 billion deal to buy the platform has not yet received shareholder support and the regulator's green light. Musk didn't reveal any key details about how he plans to manage the business side of Twitter, but expressed enthusiasm for reducing content moderation to a minimum and the prospect of making money with subscriptions.
"Apart from advocating free speech, Musk hasn't articulated a vision of what the platform is," Carolina Milanesi, an analyst at Creative Strategies, told AFP's office, "He didn't say whether Twitter has an age problem, geographic tendencies, who the biggest competitors are, what else. what he thinks." Musk's idea to ditch Twitter's advertising model for revenue, relying on subscriptions, doesn't seem feasible, Baird Equity Research analyst Colin Sebastian said in a note to investors. "We can hardly believe this is going to happen at all," Sebastian said, "unless Musk plans to finance the interest payments on the debt out of his own pocket." Analysts doubt Twitter users will queue up to pay for premium content or features like retweeting posts when social media platforms like Facebook are free.
Musk could also try to sell posts or ask third-party users to pay to share the tweets. Then it must address the issue of multiple brands associated with controversial content, such as disinformation or fake news.
Not starting today Twitter is looking for a sustainable business model that can satisfy investors; Musk, even if he were to privatize the platform, would have to find a way to pay back the huge interest in a loan guaranteed by Stanley Morgan to buy the company. Meanwhile, US lawmakers are threatening to amend laws that exempt Internet platforms from liability for what users post, for example what the European Union already enacted with the Digital Services Act. In addition, Musk's ideas to get rid of "bots", software-based accounts that trigger posts, and verify user identities, according to academics, run afoul of privacy issues and the right to free speech that he claims he wants to support.
"Spam is a form of free speech," said Duke University sociology professor Chris Bail, "and some of Musk's proposals may actually contradict each other." Between Musk's plans for Twitter to open source software and allow people to see how posts are handled and even recommend changes, it could also provide "uncivilized actors" with instructions on how to better spread their posts, Bail said. "Paradoxically, open source platforms can actually make it easier for trolls to dominate the platform."