The Only Elon Musk Twitter Takeover Update You Need

What an Elon Musk Twitter Purchase (or Breakup Payout) Would Mean for Digital Businesses

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Philip Mandelbaum
08/19/2022

I warned you what could happen if Elon Musk took over Twitter. What I never considered were the repercussions of Musk changing his (fascinating, narcissistic) mind. The things I like about Musk’s other most-famous investment are Teslas’ outside cameras and ‘my dog is OK’ screen — two desires of the ultra-paranoid; the whole ‘green’ thing may be a scam, with Musk ‘couping’ whoever he wants for their lithium reserves. As for Twitter, the man who named his child “X Æ A-12” has been pretty active, on and off the platform, since his first purchase announcement; for most influencers and brands, Musk’s public choices would be bad for business, but it seems Musk’s comfortable building his following mostly among the right (and facing off in court with the SEC over his tweets).

Three days before the world’s richest man agreed to buy Twitter for an amount that could solve world hunger seven times over, Musk was busy on the app fat-shaming liberal entrepreneur and philanthropist Bill Gates. In August 2022, he tweeted he was buying the Manchester United soccer club — and after the backlash said it was “a long-running joke” on the platform (it really wasn’t). Since joining the app in 2009, Musk has used Twitter to disparage trade unions, attack the FAA, taunt Twitter execs, generate illegitimate fears about Twitter censorship (concerns about Twitter privacy are legitimate).

A brownish brick wall covered with dozens of equidistantly placed surveillance cameras, with two woman, very small in relative size, standing in front of it, looking up

Elon Musk vs. Twitter: From the March 2022 Free Speech Poll Through Today

On March 25, 2022, Musk ran a poll — on Twitter, of course — about free speech on the platform, and then quickly ‘concluded’ the platform does not “rigorously adhere to the principal;” sold off $8.5 billion in Tesla shares; and leveraged a drummed-up controversy over the blockbuster deal.

In other words, as Twitter users, digital businesses, marketing and ad agencies and biz and tech media have warned, Musk is “not championing free speech” but “weaponizing” it. Musk would illegally earn $156 million in the process and, at least for a time, potentially disguise his true motivations. And then, less than four months later, he kicked off his campaign to back out of the deal — one he struck, characteristically, on a whim.

Why?

According to Musk: “‘bots,’” or fake accounts (which are a problem)
According to the experts: “It was always about Tesla (TSLA). When he signed the deal, Tesla cost around $1,000; when he walked, it cost around $750.”

So, what’s Musk saying and doing now? Enough to ruin his friendship with Donald Trump, “roiling” the TruthSocial users eagerly awaiting a Musk decision to reinstate the suspended Twitter account of the impeached former president.

A closeup shot from someone's bed of the profile page for Donald Trump's suspended Twitter account

Specifically, in a regulatory filing on July 8, 2022, Musk asserted Twitter was in “material breach” of their acquisition agreement — over, you guessed it, “the number of spam accounts on the platform.” Musk claimed Twitter had failed to provide him with the information necessary for him to perform his due diligence on the platform’s bot percentage, in addition to making “false and misleading representations.”

This move, needless to say, will likely lead to a long, contentious legal battle; the conclusion, however, may be pre-written:

Musk and Twitter signed a legally binding agreement in April 2022 for the former to purchase the latter for $54.20 per share
Musk waived his due diligence to expedite the deal
The terms of the deal include a $1-billion breakup fee
A clause in the contract enables Twitter to sue Musk and force him to complete or pay for the deal

And here’s the best part: As hedge fund founder, financial journalist and author Chris DeMuth Jr. writes for Seeking Alpha:

While he is unlikely to win legally, Musk’s public pronouncements have helped him use the legal process to win financially. Much of the pain of buying Twitter’s shares is ameliorated by the pleasure of getting to advantageously sell Tesla shares. The audience for his dubious suit… was always Tesla fans who believe anything that Musk says or tweets… Tesla shareholders already bid up the stock over the past month, more than offsetting Musk’s legal bills.

Meanwhile, since April, Twitter’s shares have plummeted more than 20% to a value far below the mark at which Musk offered to buy it — a very unfortunate result of all the Musk drama for a company that has:

“Struggled for years to grow”
Failed to meet investors’ financial performance expectations
The least successful advertising business among the major social media platforms
Already slowed recruitment and hiring, and implemented employee layoffs
No other potential buyer to emerge “as a white knight”
A profound need to complete the sale

Furthermore, if Twitter accepts less than the original price, it could expose the company to shareholder lawsuits.

As an avid Twitter user (my other account, for my nom de plume, is verified and very active) and social media marketing consultant, I’m only a little terrified that a fight with a man with hundreds of billions of dollars could prove catastrophic.

After all, “if you’re the richest guy in the world,” you can “do pretty much whatever you feel like.”

An iPhone open to the Twitter loading screen rests on a cardboard box that reads 'HANDLE WITH CARE'

Elon Musk and Twitter: What Does All This Mean For Me?

For us mortals, whether Musk makes good could mean a lot. Or, it could lead to little to nothing.

As my conversation with David Greene, EFF senior staff attorney and civil liberties director, revealed, while it’s possible Twitter “advertising might completely change” or “the audience that’s on it might completely change,” there is also “a potential that nothing could happen” that would materially impact how consumers or businesses use the app.

Of course, additionally, any grade of impact depends on how you currently use Twitter — or if you use Twitter at all.

I asked nine of my friends for their thoughts, and here’s what they had to say:

“I think Twitter is much more valuable than a lot of people think. It’s really the only way to spread content. My guess is that they could charge more for Blue, and they could do a better job of advertising and connecting with magazines and newspapers… I don’t think that Elon Musk is the savior that Twitter needs or particularly wants. But I do think that he owes Twitter quite a lot of money for the breakup fee.” – Molly Jong-Fast, author, journalist, and former editor at large of The Daily Beast

“There are other pathways Twitter can take. I think Elon Musk buying it would be the end of it. They can rejuvenate their API, juice their search and ditch the algorithm for starters. And charge for it. I was paying for Twitter Blue until Musk came into the picture. I'd pay for it again, but would suggest other features.” – Karoli Kuns, managing editor of Crooks & Liars

“Plenty of companies lose money for years and still survive. Musk won’t buy Twitter but they might win in court, which could mean a huge settlement for the company. Musk would destroy the platform… We already know what social media turns into when there are no rules and no guidelines.” – Juliet Jeske, journalist and researcher with The Craig Newmark Graduate School of Journalism

“The problem with Twitter and all social media companies is their poisonous ‘surveillance capitalism’ business model that relies on a steady flow of our data and the constant updating of our respective citizen ‘dossiers’ in order for them and their partner companies to supposedly build us a better mousetrap. In reality, the mousetrap never arrives, because these companies aren’t optimizing for what people need. They’re optimizing for investors like Musk, whose goals are very different from the average persons’, which means users — don’t confuse them with customers, please — are always last.” – Jackie Singh, director of STOP, and former Joe Biden staffer

“The political economy of the internet incentivizes Big Tech platforms to exploit users.This is true whether Elon Musk owns Twitter or not. Big Tech companies are democratically unaccountable and opaque. They are incentivized to collect, analyze, and share user data with powerful institutions that operate against the interests of users. As long as this remains the case, I would rather see social media platforms and use decrease, if not end.” – Nolan Higdon, media studies lecturer and author of ‘The Anatomy of Fake News’

“Musk is still behaving like Donald Trump in the 1990s, which is not a good look for any CEO in 2022. His misogyny shines through in the sexual harassment lawsuits at Tesla and the stories of his offering a horse to a private jet flight attendant in exchange for sexual favors. He tweets off-color jokes to his juvenile fanboys. He didn't even follow any women during his first seven years on Twitter. Today, he appears to only follow 13 women, including his mom, his sister, and two ex-wives. As women's rights take center stage in American life once again, Musk would be the worst possible person to lead Twitter in the years ahead.” – Richard Hine, former Wall Street Journal and AdWeek writer, creator of The Daily Edge, and CEO of social media agency The Levity Dept.

“I'd rather Twitter be less successful than unilaterally owned by Elon.” – Allison Gaines, writer for Oprah Daily and Medium publications ZORA and GEN

"I still don’t agree with having [Musk] buy it. If Twitter goes belly up, we find another platform." – Melissa Jo Peltier, New York Times-bestselling author and Emmy-winning film and TV writer, director and producer

"We just have to be responsible in how we use those apps. Sadly, there's no magic wand that protects privacy and it's simply a matter of knowing what you can and cannot post. I suppose a VPN would be good for better security, but it will always start with you." – Daryle Lamont Jenkins, executive director of One People's Project

A person with a dark hoodie over their head, with their face unseen, bending down in what appears to be a server room, typing on a laptop

That’s terrifying, no doubt. But, as far as I’m concerned:

Twitter can still open up entirely new worlds — and even worlds supported by brands — to consumers of all demographics
Twitter can still be lucrative for brands — if used correctly

I, for one, remain cautiously optimistic that good can continue to come from Twitter — even with Musk at the helm; after all, the previous head honcho, Jack, is a ‘crypto tech bro’ too.

6 Twitter Marketing Strategies You Should Try

Creating communities, developing loyalty, generating leads, and improving ROI
Running polls, showcasing your morals, values and vision
Sharing behind-the-scenes footage, demonstrating your commitment to employee experience
Sharing influencer- and user-generated content, boosting brand awareness and engagement
Leveraging trending topics, creating buzz like Wendy’s
Responding ‘on main’ and in DMs to customer complaints and compliments, providing and demonstrating an optimal customer experience

On the other hand, and especially if you do not have the right team, Twitter could be much more than it’s worth.

6 Must-Haves Before Implementing Your Twitter Marketing Strategy

To achieve your twitter marketing goals, you’ll need someone (or someones) who can:

Moderate and facilitate engagement in Twitter communities (e.g., a social media manager or community manager)
Develop innovative polls based on the company mission and cause(s) (e.g., a social media manager or brand manager)
Assemble and disseminate on-brand corporate video content (e.g., a video producer, general content creator, social media manager or HR manager)
Manage and utilize relationships with influencers and customers — and develop your influencer marketing program (e.g., an affiliate program manager, partnerships program manager or digital marketing manager — and a digital marketing, social media or PR strategist)
React quickly to capitalize on changing trending topics — on brand, and authentically (e.g., a social media strategist, digital marketing strategist or brand strategist)
Not only deliver a positive CX but publicly demonstrate that commitment under the increased pressure of performing in an open forum (i.e., a team of CX professionals, with some help from a leading social media automation tool)

OK, Now What?

Assuming Twitter is, in fact, right for you, ask yourself whether your digital marketing team would benefit from streamlined social media content creation, scheduling, distribution and performance measurement. If so, demo at least two of the following, and invest in the one you think is best.

The Top 10 Social Media Management Tools

Sprout Social and SocialPilot are my two favorites. Of course, if you’re already using Hubspot, Semrush or Zoho software, it might make the most sense to invest in what would be the most integratable — and possibly most affordable — social media platform for you.