Evaluation: Following Elon Musk’s takeover, Twitter’s management is probably going in for a shakeup


Musk, after all, is notoriously unpredictable however one factor appears clear: Twitter’s management will possible look a lot completely different after the deal than it does immediately.

There are just a few apparent preliminary indicators that this may occur. Twitter’s board on Monday introduced it had agreed to promote the social media firm to Musk in a deal valued at $44 billion. The deal got here simply 11 days after Musk — who was initially supplied a seat on the corporate’s board however declined — made what he known as his “greatest and closing” provide for the corporate. In his provide letter, Musk mentioned, “I haven’t got confidence in administration.”
In an all-hands assembly for workers that Agrawal and board chair Bret Taylor held later Monday, Taylor mentioned the corporate’s board of administrators “not exists on the opposite facet of this transaction.”

Then on Tuesday, Musk publicly criticized two of the corporate’s prime authorized executives on Twitter, main every to face a barrage of hateful feedback on the platform.

“[Musk is] in all probability not proud of the administration group and the board, and I believe that is a giant motive why the preliminary provide to take a seat on the board and see how issues play out over the following two years is one thing he simply wasn’t enthusiastic about,” mentioned Angelo Zino, senior business analyst at CFRA Analysis.

Twitter declined to touch upon this story. Musk didn’t reply to a request for remark.

The destiny of Twitter’s CEO

Many analysts agree that Agrawal will in all probability be amongst these ousted when Musk’s acquisition closes. Agrawal advised workers on Monday that he’s “optimistic” in regards to the firm’s future, but it surely was already unclear what sort of working relationship he would have with Musk. After it was introduced that Agrawal would take excessive job from Dorsey in November, Musk tweeted a photograph evaluating the brand new CEO to former Soviet chief Joseph Stalin.

“It is arduous for me to see a scenario the place [Agrawal] stays as CEO after the deal,” mentioned Daniel Newman, principal analyst at tech analysis agency Futurum Analysis. “It is unlucky as a result of I do not assume his tenure was lengthy sufficient to really totally indict him. … I simply assume with Musk’s feedback, it is fairly clear that he desires to go in sort of a tough proper from the place the technique was,” he mentioned.

In some methods, the management shakeup — if it does occur — could replicate Twitter’s longstanding struggles to show its highly effective person base and outsized affect within the worlds of media and politics right into a wholesome enterprise, in keeping with Wedbush analyst Dan Ives. Twitter (TWTR) shares are presently buying and selling solely 15% larger than their IPO value from practically 10 years in the past, in comparison with rival Fb (FB) whose inventory has gained 273% over the identical interval.
Musk may also possible search to shift the interior tradition at Twitter to raised align along with his imaginative and prescient for the corporate.

It is not precisely clear what that imaginative and prescient is. On one hand, Musk has mentioned he desires to “unlock” Twitter’s “huge potential.” However on the opposite, he is mentioned his acquisition will not be about cash and made recommendations for the platform, reminiscent of eradicating content material restrictions, that might run counter to Twitter’s core promoting income mannequin. No matter his plans, Musk will virtually actually wish to stack the corporate’s administration group with leaders who’re on the identical web page.

“He’ll be hiring those who perceive his imaginative and prescient, perceive the sort of work, product and tradition he is making an attempt to create,” Newman mentioned. “There is no query that that is going to be a 180-degree tradition shift. Tesla is named being a really arduous tradition, fairly demanding of individuals, [while] Twitter was sort of seen as slightly little bit of a softer tradition, slightly extra considerate about folks and clearly was very attentive to numerous social points. … I believe Musk goes to be very prudent to verify he types out the expertise who he thinks can assist him carry his mission ahead.”

Billionaire bromance?

Even when Musk does clear home at Twitter, it appears unlikely that the Tesla and SpaceX CEO will wish to run Twitter himself, at the very least not for lengthy, given his many commitments.

He would additionally virtually actually be taught rapidly in regards to the not-so-fun elements of being a social media CEO. Such a task faces intense scrutiny and dangers being known as to testify earlier than lawmakers about selections associated to dangerous content material, knowledge privateness and extra. Already, Musk has acquired a warning from EU Commissioner Theirry Breton that Twitter should abide by Europe’s heightened new requirements for content material moderation or else danger fines or perhaps a potential ban.
Twitter has been focused on 'healthy conversations.' Elon Musk could change that

Musk could wish to keep away from placing himself in that place, given how reliant his different corporations are on authorities contracts.

Many followers of the corporate are actually speculating about whether or not Musk may encourage Dorsey — who stepped down as CEO in November and is ready to go away the board in Might — to return to a management function at Twitter after the deal is full. Whereas the Twitter cofounder additionally has different issues on his plate because the CEO of monetary companies agency Block, Musk and Dorsey appear to get alongside, and will agree on a imaginative and prescient for the platform.

The 2 eccentric, billionaire, crypto-loving tech titans have traded pleasant remarks on Twitter through the years. When Twitter was dealing with strain from an activist investor in 2020, Musk tweeted: “Simply need [to] say that I help @Jack as Twitter CEO. He has a very good ❤️.” Extra lately, Musk complimented the brand new “Block Head” title Dorsey has taken on at Block.

On Monday evening, Dorsey responded to Musk’s deliberate acquisition of Twitter in a considerably cryptic tweet thread, which kicked off with a hyperlink to the Radiohead tune “Every part In Its Proper Place.”

“Elon’s purpose of making a platform that’s ‘maximally trusted and broadly inclusive’ is the precise one,” Dorsey mentioned. “That is the precise path…I consider it with all my coronary heart.”

Dorsey additionally famous that Twitter has been “my sole concern and my greatest remorse,” saying, “It has been owned by Wall Avenue and the advert mannequin. Taking it again from Wall Avenue is the proper first step.”

In current weeks, Dorsey has criticized Twitter’s board and urged he takes concern with its stance as a public firm.

“It desires to be a public good at a protocol stage, not an organization,” Dorsey mentioned. “Fixing for the issue of it being an organization nonetheless, Elon is the singular answer I belief.”

In some methods, a Dorsey return underneath Musk would appear shocking. The Twitter cofounder oversaw the platform throughout lots of its struggles to develop its person base and enhance income. Dorsey has additionally undoubtedly had at the very least some affect on Twitter’s current tradition, which Musk could attempt to overhaul. And Twitter has mentioned Dorsey was liable for lots of the firm’s greatest and most controversial selections, most notably eradicating former President Donald Trump’s account, which Musk seems to oppose.

Nonetheless, if Musk’s plans for Twitter align with “what Dorsey noticed the corporate as however misplaced his deal with on it through the years, it might be an attention-grabbing approach for him to return and run the corporate that he all the time envisioned working however by no means had the help to do,” Newman mentioned.

Leave a Reply

Your email address will not be published.