Elon Musk’s Twitter Takeover

On October 26, 2022, Elon Musk, owner and CEO of Tesla, SpaceX, and recently Twitter, walked into the social media giant’s office in San Francisco holding a porcelain sink, announcing, “Let that sink in!” This grand entrance resulted from Musk’s months-long attempt to acquire ownership of Twitter. Musk’s plans to buy Twitter began as early as January 2022. He began investing in and bringing attention to the social media platform, gaining a 5% stake by March. Throughout March and April, Musk took to Twitter to discuss his opinions on the platform and express his desire to own it. After amassing even more company shares, a 9% stake, the Twitter board was pressured to begin negotiating with Musk to avoid a hostile takeover. On April 25, a deal was reached for Musk to buy the company for 036;44 billion and privatize it. The deal was temporarily put on hold, though, following further controversies in which Musk threatened not to follow through with the agreement, in which he sued Twitter, and they countersued. The trial was eventually delayed, and the Delaware judge gave both sides until October 28, 2022, to settle an agreement. The acquisition deal was finally completed that day, and Elon Musk bought Twitter at the original offer of 036;44 billion. But the story continues. Shortly after Elon Musk gained ownership of Twitter, chaos ensued. The day after, many of Twitter’s chief executives were fired. Parag Agrawal, Twitter’s chief executive, and Ned Segal, the chief financial officer, both received news of their dismissal by email. In addition, Vijaya Gadde, the company’s legal and policy executive, and Sean Edgett, the general counsel, were fired. Additionally, Edgett was fired and escorted out of the office, attesting to the hostilities between Musk and the company’s former executives. But potentially even more concerning than the firing of key figures in Twitter leadership was Musk’s almost immediate interest in executing mass layoffs. In an October 28 meeting with human resource executives, Musk laid down the deadline for reducing the workforce as of November 1 of 2022. Twitter teams rushed to tell him of the potential consequences and legal trouble this would cause, and he agreed to delay. How many employees Musk hoped to lay off remained a hotly debated topic. While Twitter managers were told to cut about 25% of the workforce, many speculated that the number could be much higher. According to a New York Times article, Musk “laid off half the company’s 7,500 workers this month.” Many of Twitter’s engineers and managers were also fired, raising concerns about the company’s ability to keep Twitter running. Elon Musk’s leadership and acquisition of Twitter have led to chaos within the company, and things are showing few signs of slowing down. It has yet to be determined where Musk will lead Twitter, but many can agree that it will not be a smooth ride. Since October 2022, Musk has made many changes to Twitter, especially its design. Now, Twitter has a TikTok-style “For You Page,” where you can see tweets that the Twitter algorithm thinks you may like. Also, the verification process has been changed. Now, you can buy a verified account simply by subscribing to Twitter Blue. In addition, many people previously banned from Twitter have also returned, including Donald Trump, Jordan Peterson, and Kathy Griffin. And finally, you can now see how many views each Twitter post has gotten. After this whirlwind in October 2022, the dust settled in Elon’s Twitter takeover. However, Elon was in the spotlight again when he announced this February that he would hand over the company to a new CEO by the end of 2023. Musk held a Twitter poll this December asking if he should step down as CEO. The poll revealed that 57.5% of respondents believed it would be better for someone else to run the company. Even Musk’s most prominent supporters think he should focus more on Tesla and SpaceX. Recently, in a video chat at World Government Summit in Dubai, Elon stated, “I need to stabilize the organization and just make sure it’s in a financially healthy place and the product road map is clearly laid out. I’m guessing toward the end of this year should be a good timing to find someone else to run the company. I think it should be in stable condition around the end of this year.” In light of Musk’s wild actions in running Twitter, especially in October of 2022, the world is watching the epic drama of Elon’s Twitter Takedown and how new leadership will pan out.