February 3, 2023

Following Elon Musk’s takeover, Twitter’s leadership is likely in for a shakeup

5 min read

Musk, of course, is notoriously unpredictable, but one thing is clear: after the deal, Twitter’s leadership will look very different than it does today.

There are clear preliminary indications that this will happen. Twitter board on Monday Announced It agreed to sell the social media company Musk in a 44 billion deal. The deal came just 11 days after Musk – who was initially offered a seat on the company’s board but declined – calling it his “best and final” offer to the company. “I do not trust the administration,” Musk said in his offer letter.
In one All hands meeting For employees who met with Agarwal and board chair Brett Taylor late Monday, Taylor said the company’s board of directors “no longer exists on the other side of the transaction.”

Then on Tuesday, Musk publicly criticized the company’s two top legal executives on Twitter, causing everyone to receive hateful comments on the platform.

“[Musk is] Maybe the management team and the board aren’t happy, and I think that’s a big reason why the initial offer to sit on the board and see how things are going in the next two years is something he wasn’t interested in. ” Angelo Zeno, Senior Industry Analyst at CFRA Research.

Twitter declined to comment on the story. Musk did not respond to a request for comment.

The fate of the CEO of Twitter

Many analysts agree that Agarwal will probably be among those who will stop receiving musk. Agarwal told employees Monday that he was “optimistic” about the company’s future, but that was not the case. Already unclear What kind of working relationship will he have with Musk? Following the announcement that Agarwal would take over from Dorsey in November, Musk tweeted a picture comparing the new CEO to former Soviet leader Joseph Stalin.

“It’s difficult for me to see a situation where [Agrawal] Daniel Newman, principal analyst at tech research firm Future Research, said he has been CEO since the deal. … I just think from Musk’s comments, it’s clear he wants to go a hard way from where the strategy was, “he said.

Parag Agarwal has been the CEO of Twitter for only four months, but many of the company's followers expect him not to be in the role if Musk's acquisition is completed.
According to Wedbush analyst Dan Ives, in some ways, a change of leadership – if that happens – could reflect Twitter’s long-standing struggle to heal its powerful user base and its large influence in the world of media and politics. Turn it into a good business. Twitter (TWTR) Shares are currently trading just 15% higher than their IPO value almost 10 years ago, compared to competitors. Facebook (FB) Its stock has increased by 273% during the same period.
Musk will likely try to change his inner culture on Twitter to better adapt to it. Approach to the company.

It is not clear what that vision is. On the one hand, Musk has said that he wants to “unlock” the “excessive potential” of Twitter. But on the other hand, it has said that its acquisition is not about money and has offered suggestions for the platform, such as removing content restrictions, which could run counter to Twitter’s basic advertising revenue model. Is. Whatever its plans, Musk will almost certainly want to stack the company’s management team with leaders who are on the same page.

“He will hire people who understand his vision, his work, his product and the culture he is trying to create,” Newman said. “There is no question that this is going to be a 180 degree culture change. Tesla is known for having a very tough culture, which is very demanding. [while] Twitter was seen as a slightly softer culture, more thoughtful about people and obviously more focused on a lot of social issues. … I think Musk will be very careful to make sure he selects the skills that he thinks will help him in his mission. ”

Billionaire bromance?

Even if Musk does a clean house on Twitter, it looks like the CEOs of Tesla and SpaceX will want to run Twitter themselves, at least not for long, given their many promises.

He will almost certainly soon learn the ins and outs of being the CEO of social media. Such a role is subject to rigorous scrutiny and risks, which are called upon to testify before legislators about decisions related to harmful material, confidentiality of data and much more. Already, Musk has. A warning was received EU Commissioner Thierry Breton has said that Twitter should adhere to new European standards for moderation of content, otherwise there is a risk of fines or possible bans.
Twitter is focused on 'healthy communication'.  Elon Musk could change that.

Musk wants to avoid putting himself in that position, given how much his other companies rely on government contracts.

Many of the company’s followers are now speculating on whether Musk could encourage Dorsey – who resigned as CEO in November and is due to leave the board in May – to complete the deal. To return to leadership role on Twitter. While the co-founder of Twitter has other things as CEO of the financial services firm Block, Musk and Dorsey are coming together, and may agree on a platform vision.

Two eccentric, billionaire, corrupt-loving tech titans have made a business of friendly comments on Twitter in recent years. When Twitter was under pressure from an active investor in 2020, Musk tweeted: “Just want [to] “I support Jack as the CEO of Twitter,” he said. That’s good.

Monday night, Dorsey. Replied In a somewhat secretive Twitter thread, Musk planned to acquire Twitter, beginning with a link to Radio Head’s song “Everything is in the right place.”

“Elon’s goal of creating a platform that is ‘more reliable and more widely involved’ is right,” Dorsey said. ”

Dorsey also noted that Twitter was “my only problem and my biggest regret,” adding that “this has been the property of Wall Street and the advertising model. Taking it back from Wall Street is the right first step.”

In recent weeks, Dorsey has criticized Twitter’s board and suggested that it raise issues with its position as a public company.

“It wants the public good, not the company, at the protocol level,” Dorsey said. “Elon is the only solution I can trust to solve the problem of being a company.”

In some ways, the return of Dorsey under Musk will seem surprising. The Twitter co-founder oversaw the platform during his many struggles to grow his user base and increase profits. Dorsey has undoubtedly had at least some influence on Twitter’s current culture, which Musk could try to fix. And Twitter says Dorsey was responsible for many of the company’s biggest and most controversial decisions, most notably the removal of former President Donald Trump’s account, which Musk appears to oppose.

Still, if Musk has a Twitter plan. Newman said: “The way Dorsey saw the company but lost his handle on it over the years, it could be an interesting way for him to return and run the company he had always imagined. It was never supported. ”

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