Billionaire investor Elon Musk’s Twitter takeover has been plagued by controversies as industry leaders question the changes implemented by him. As Twitter layoffs and policy changes take the limelight, Musk has realized that it is tough to make the social media company generate profits quickly.
On November 16, during a trial involving his electric car company Tesla, Musk told lawyers that he will find a new Twitter CEO soon.
Musk burns his fingers with Twitter
Back in April when Musk offered to buy Twitter, he did not expect the media hailstorm it would generate. After doing his best to wiggle out of the deal, Musk’s Twitter takeover was finalized for $44 billion in late October.
Since then, the self-styled free speech advocate has been in the news for starting his new role as “Chief Twit” by firing top executives. He then fired half the workforce as he sought to improve revenues. He acknowledged their contributions to the company but mentioned that the Twitter layoffs were necessary to move the company forward.
As teams that battle misinformation on the site were drastically reduced, one unexpected outcome was that many big advertisers paused their campaigns or completely pulled out of Twitter. The suggested $8 fee for the blue tick made matters worse as impersonators flooded the microblogging site with fake profiles.
The fake Twitter accounts caused companies like Eli Lilly and Lockheed Martin to lose billions after trolls tweeted false information.
The incident garnered global attention and the backlash for Twitter was swift and decisive. It was clear that if Elon Musk continued as twitter CEO, the social media site will lose all sources of revenue. The problem might get worse, as the Twitter layoffs continue, with the company terminating deals of contractors who tracked hate speech and conducted content moderation.
Musk tells court he does not want to be CEO
A few days ago Musk admitted that he is overworked and has bitten off more than he can chew. As the CEO of SpaceX, a private space exploration company, and Tesla, the electric carmaker, no one can argue that Elon Musk has his hands full.
During a recent video conference musk bemoaned the fact that his workload has increased quite a bit, in an apparent reference to the Twitter deal. “I mean, oh, man. I have too much work on my plate, that is for sure.”
On Wednesday, Musk was on trial in a Delaware courtroom defending himself against a shareholder Tesla lawsuit concerning his compensation package at the electric carmaker. Reportedly, Tesla’s directors awarded him a remuneration package that might be well over $55 billion.
As some Tesla engineers have also been moved to Twitter temporarily, experts have raised concerns about Musk’s management style and capabilities as he juggles the functioning of three companies in a CEO capacity.
During the trial, Musk is said to have revealed that “the fundamental organizational restructuring” of Twitter will end soon and he will pass on the reins to someone else. “I expect to reduce my time at Twitter and find somebody else to run Twitter over time,” Said the billionaire.
Musk admits looking for a New Twitter CEO
“Well, there’s an initial burst of activity needed post acquisition to reorganize the company,” Musk told lawyers during the Tesla lawsuit. But once it is done, he will look for and appoint a new leader for Twitter.
It makes economic sense to look for a new leader as Musk’s Twitter restructuring has caused an unprecedented level of chaos on the platform and amongst employees. A new Twitter CEO could bring in some fresh perspective and also assuage worried investors who are watching over the bleeding company. Revenues for Twitter have supposedly dwindled sharply as advertisers reassess their partnership with the social media company.
As a man who bought Twitter after being encouraged by his fans on the platform, the best way to increase revenues for Twitter is by attracting more daily users.
But the ongoing media backlash will spill over to Twitter’s revenues if Musk continues to take the helm. Therefore, under the current climate, the mature thing to do is to find a new Twitter CEO who can revitalize the company and its image.
Appointing someone else as Twitter CEO could boost the company’s revenues and get the company back on track, while freeing Musk to pursue other projects.
