It’s been a year since Elon Musk, the world’s richest man, completed the purchase of Twitter. The billionaire now wants to turn the platform into what he calls “an everything app.” He’s named it X because the letter represents an experimental future. The name also ties the new company to other Musk projects – his rocket company, Space Exploration Technologies; an artificial intelligence startup he launched this month; and a former online bank he co-founded in 1999 that now operates as PayPal.
Musk has been tinkering with the company’s design and business model, and many are wondering precisely what the rebrand is about. One theory is that it’s simply to tie Twitter closer to Musk and his futuristic bro-y aesthetic. Another theory is to shift away from Twitter’s reliance on advertising revenue and toward a paid subscription model.
Whatever the reason, it is clear that Musk has no intention of letting anyone interfere with his vision for Twitter. He’s fired several managers and imposed his leadership style on the remaining employees. He’s even tweaked the algorithm to ensure his tweets are seen first on the site.
Despite all that, Musk’s plan for Twitter has yet to materialize. He’s still struggling to get the company into positive cash flow.
This is because he has been forced to sell off his shares in the company and is spending more than he is taking in. He’s reportedly spent $3.6 billion on Twitter and is expected to spend an additional $13 billion this year.
As a result, some of the big advertisers have started to pause their ads on the site. Others have decided to pull their ads altogether due to concerns about the direction that Musk is taking the company.
In a move that has drawn criticism from many users, the company recently added a label that says “government-funded” to some of its content. This is a direct slap in the face to those who rely on government funding for their journalism and could cause some users to stop using the site.
As a result of these ongoing concerns, some Twitter users are beginning to question whether they can trust the company to tell the truth. How long this will last remains to be seen, but some are already looking elsewhere for their social media needs. This is not good news for a company that relies on a large, loyal audience to drive its business. It may be time for the board to step in and take control of the company before it’s too late.
