If you can't beat them, buy them
Why build your own social media platform when you can buy one? (Photo: electrek.co)
Last week, Elon Musk was giving “serious thought” to starting his own social media platform after claiming that Twitter doesn’t allow free speech. This week, the tech billionaire acquired a total of 73,486,938 Twitter shares—around $2.9 billion worth—making him the largest shareholder with a 9.7% stake, more than four times the 2.25% holding of Twitter founder Jack Dorsey.
Musk has a Twitter flock of 80 million, far more than any other CEO. A frequent tweeter, he uses the platform as the major form of disseminating the latest news about his companies Tesla and SpaceX, neither of which have a traditional public relations department in place.
A month ago, Musk asked his followers whether they thought Twitter encouraged free speech. "Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?" Musk tweeted last month. He then asked, "Is a new platform needed?"
Dan Ives, a tech analyst at Wedbush Securities said, "I think he intends to go active and force change at Twitter." Even if Musk doesn't try to change the way Twitter operates, his acquisition could prompt other activist investors to take a stake in the company. "One way or another, he's going to change the course of Twitter," Ives said.
Conservatives like author Brigitte Gabriel immediately requested to get Trump back on Twitter while others pointed out that Musk’s call for free speech is conditional.
Although Musk’s stake is a “passive investment” under US laws, meaning he is barred from seeking control of the company. It certainly doesn’t mean he must remain passive in sharing his thoughts about Twitter, whether on the platform or internally—something he has no qualms about.
Free speech costs money
The Tesla chief executive isn’t just beefing up his portfolio. He’s also hinting at plans to influence the platform’s handling of free speech, content moderation, and digital censorship. Just yesterday, he posted a poll asking his followers, "Do you want an edit button?"
Musk could see Twitter as an investment with big growth ahead (news of the purchase sent Twitter shares soaring 22% in early trading) or he could have other reasons for the purchase. Like, possibly buying stock to make sure the platform doesn't restrain his speech.
One thing’s certain, Musk’s actions are another display of the power of Big Tech—and big money—over free speech which, in this case, is nowhere near free.
