Elon Musk Twitter Now X Turmoil: Elon Musk’s acquisition of Twitter, rebranded as X, has set the platform on an uncertain and tumultuous path. Advertisers are cutting spending, user numbers are dwindling, regulators are circling, and the staff has been significantly reduced. Musk’s ownership has brought about more change in a year than Twitter saw in the previous 16.
Musk’s biggest move was rebranding Twitter as X, aiming to transform it into an “everything app” that handles messaging, social networking, audio, video, payments, and online shopping. This sudden change caught the tech world off guard, as Twitter, while not as massive as Facebook or Instagram, was influential and widely recognized.
According to X’s new CEO, Linda Yaccarino, the user base is now estimated to be between 200 million and 250 million, but recent data suggests a decline in visits. The rebranding decision, while aligned with Musk’s ambitions, has been a contentious one, and many believe it damaged the platform’s brand value.
X was heavily reliant on advertising, which accounted for nearly 90% of its annual revenue in 2021. However, a significant drop in advertising revenue has occurred due to concerns over moderation standards and Musk’s leadership. Musk aimed to reduce this reliance through a subscription model, rebranded as X Premium.
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This transition hasn’t been smooth, with a botched relaunch and confusion over pricing. While the subscription service has gained some traction, it’s far from compensating for the advertising losses. Musk has even introduced a $1 annual charge for new users in specific regions.
One of Musk’s initial actions was to cut about 50% of X’s staff, citing concerns of a “far-left” bias in the moderation team. This move effectively erased efforts to maintain diverse viewpoints and content quality. Musk reinstated previously banned users while arbitrarily banning others. X’s approach to content moderation and Musk’s decision-making have deterred advertisers. X’s standing among advertisers has plummeted, making it a less attractive option for digital advertising.
Musk wasted no time in replacing X’s CEO, Parag Agrawal, as soon as the deal was finalized. This move created further turbulence. In response to the damage done to the business model, Musk appointed Linda Yaccarino, an advertising industry veteran, as CEO. Yaccarino is working to rebuild relationships with advertisers, but her task is not without challenges. Regulatory pressures, including an investigation by the US Department of Justice and the US Securities and Exchange Commission, add to the complexities of her role.
In the age of Musk’s ownership, X faces hurdles on multiple fronts. The platform’s future remains uncertain as it navigates through a landscape of changing business models, dwindling user numbers, and regulatory scrutiny. Some users, advertisers, and former employees long for the old days, as X stands at a crossroads with an uncertain path ahead.