Global Economic Order Unraveling? – Business & Economy
- X, formerly known as Twitter, is currently owned by Elon Musk, who acquired the company in October 2022.
- Elon Musk, a technology entrepreneur and investor, completed the acquisition of Twitter for approximately $44 billion on October 27, 2022.
- Following the acquisition, Musk implemented significant changes to the platform, including rebranding it as X in July 2023.The BBC details the rebranding and the rationale behind it, citing...
X (formerly Twitter) Ownership and Elon Musk
Table of Contents
X, formerly known as Twitter, is currently owned by Elon Musk, who acquired the company in October 2022.
Elon Musk, a technology entrepreneur and investor, completed the acquisition of Twitter for approximately $44 billion on October 27, 2022. Reuters reported on the completion of the deal, which followed months of legal challenges and uncertainty.
Following the acquisition, Musk implemented significant changes to the platform, including rebranding it as X in July 2023.The BBC details the rebranding and the rationale behind it, citing Musk’s vision for an ”everything app.”
Changes Under elon Musk’s Ownership
Since taking ownership, Elon Musk has introduced numerous changes to X, impacting it’s policies, features, and workforce.
Key changes include the introduction of X Premium (formerly Twitter Blue), a subscription service offering features like a blue checkmark, edit button, and prioritized ranking in replies. X Help Center provides details on X Premium features and pricing.
Musk also substantially reduced the company’s workforce through multiple rounds of layoffs, impacting various departments. The New York Times reported extensively on the layoffs and their impact on the company’s operations.
Content moderation policies have also been altered, leading to concerns about the rise of hate speech and misinformation on the platform. The Guardian has published reports detailing the increase in hate speech following changes to content moderation policies.
Financial Performance and Valuation
The financial performance of X under Elon Musk’s ownership has been a subject of scrutiny, with reports indicating a decline in advertising revenue.
In November 2023,Musk stated that X was losing over $4 million per day. CNBC reported on Musk’s statement, highlighting the financial challenges facing the company.
Estimates of X’s current valuation vary, with some reports suggesting a significant decrease from the $44 billion acquisition price. Forbes reported that Fidelity marked down its valuation of X to $31.25 billion in December 2023.
Legal and Regulatory Challenges
X has faced several legal and regulatory challenges since Elon Musk’s acquisition.
The European Union has launched investigations into X’s handling of illegal content and disinformation, especially related to the russia-Ukraine war. Reuters details the EU’s investigation and the potential penalties for non-compliance.
X has also been involved in legal disputes with advertisers who have paused spending on the platform due to concerns about brand safety. The Wall Street Journal reported on the advertiser exodus following Musk’s changes to the platform.