Twitter’s wild ride could be a downer for Elon Musk – The world’s wealthiest man has made a spectacle out of his ownership of social media platforms. Advertisers, employees, and regulators are not pleased
In the short time that Elon Musk has been at the helm of Twitter, chaos has ensued. Experts warn that lawsuits, regulatory intervention, and financial collapse may be imminent.
The billionaire made his decisions public by tweeting about new policies, then quickly reversing them, and asking users for feedback about features such as verification.
Musk tweeted, “Please Note that Twitter Will Do Many Dumb Things in the Coming Months.” “We will keep the good stuff and change what doesn’t.”
Experts believe this back-and forth style of leading a large company like Twitter is unheard of. It could lead to trouble for the future as advertisers flee the chaotic platform, while regulators talk about potential investigations.
Anat Alon-Beck from Case Western Reserve University in Ohio said that “he’s trying to decide how to proceed and clearly doesn’t have a plan. It’s chaos.” “There must be someone in the room who is responsible, and that’s not Elon.”
Twitter and Musk are facing litigation
Analysts believe that Musk’s rebellious management style at Twitter is similar to how he managed companies in the past but has had consequences.
Microsoft Edge will get a dedicated “Touch mode” on Windows 10, Windows 11.
He has been sued by other companies, including SpaceX and Tesla, as well as Neuralink, a brain-machine interface developer.
The Twitter meltdown continues. Musk is facing a lawsuit next week. Investors at Tesla accuse Musk of overpaying for his company and not investing enough time. Tesla investors have sued Musk over claims of workplace harassment and securities fraud. Musk’s tweet in 2018 about taking Tesla private was a direct result of this lawsuit.
Twitter already faces a lawsuit by some of the thousands of Musk’s employees who claim they weren’t given adequate notice or severance pay. Alon-Beck stated that this is only the beginning of legal problems for the company.
She said that Musk will be facing lawsuit after suit after lawsuit. There are many legal issues that he is facing, and will continue to face, in relation to this acquisition.
Regulative intervention is on the horizon
Musk could be subject to regulatory scrutiny for his actions on Twitter. This is in addition to ongoing litigation from employees and investors. It follows allegations that Musk has been flouting Federal Trade Commission (FTC)regulations.
The Verge reported Thursday that Twitter might not be following an FTC order from May. This was after it had reached a settlement that would have required it to conduct privacy reviews before changing products.
According to the report Musk “had already bypassed standard data governance procedures”, and an internal lawyer at Musk warned that Musk could face billions in fines. FTC responded by saying it was “tracking recent developments on Twitter with deep concern”.
The agency stated that “no CEO or company is above law” and required companies to follow its consent decrees. “Our revised order gives new tools to ensure compliance and we are ready to use them.”
Advertisers flee from bankruptcy concerns
Advertisers have already quit Twitter. General Motors, General Mills, and other companies have paused messaging on the platform indefinitely due to concerns about the company’s instability. More companies should cut ties to Twitter because of hate speech and misinformation, civil rights groups say.
Advertisers’ responses show how Musk’s leadership style does not translate to Twitter. The company, unlike other Musk ventures, is heavily dependent on advertising funding. This makes Musk’s unpredictable behavior more detrimental to the firm’s bottom line, according to John P Wihbey of Northeastern University, a professor in media innovation and technology.
Wihbey stated that companies like SpaceX and Tesla are more dependent upon hardware than the public believes. “But advertisers can easily walk away from this business, so it’s not very savvy to confuse large sections of the user population.”
Musk is facing severe pressure to turn around the company’s fortunes after he bought Twitter for $44bn. Musk, a billionaire, stated that Twitter was losing $4m per day and advised staff on Thursday that bankruptcy is possible.
His erratic management style may have helped him in other companies but with a platform such as Twitter, which is heavily dependent on advertisers for funding, it could backfire quickly, according to Raj Shah, lead analyst, telecom, media, and technology at Publicis Sapient.
Musk said that his experience leading companies with a mindset of “I have the big picture in my mind and we’ll find out how to get there” is not one that can translate well to important information and advertising platforms where millions depend on the stability, reliability and availability of technology and content.
Shah said, “It’s now that the showman ego is overblown and it’s time for a long-, medium-, and short-term strategy.”
We have a favor for you, as you are joining us from India today. Since we began publishing 200 years ago with our fearless journalism, tens of millions have trusted the Guardian in times of crisis, uncertainty and solidarity. We now have more than 1.5 million supporters from 180 countries. This keeps us open and independent, and allows us to continue publishing.
The Guardian does not have shareholders or billionaires, unlike many other news organizations. Only the passion and determination to provide high-impact, global reporting that is free from political or commercial influence. This kind of reporting is essential for democracy, fairness, and to demand better from those in power.
