Analysis: After Elon Musk seizes power, Twitter’s leadership is likely to undergo changes 2022-04-28 05:44:47


Musk, of course, is known to be unpredictable, but one thing seems clear: Twitter’s leadership will likely look a lot different after the deal than it does today.

There are some clear early indications that this will happen. Twitter Board of Directors on Monday announce It agreed to sell the social media company to Misk in a deal worth $44 billion. The deal came just 11 days after Musk – who was initially offered a seat on the company’s board but declined – made what he called his “best and last” offer to the company. “I don’t trust management,” Musk said in his presentation speech.
at comprehensive meeting As for the employees that Agrawal and Chairman Brett Taylor filled later on Monday, Taylor said the company’s board “is no longer on the other side of this deal.”

Then on Tuesday, Musk publicly criticized two of the company’s top legal executives on Twitter, prompting each to face a barrage of hateful comments on the platform.

“[Musk is] Maybe he wasn’t happy with the management team and the board, and I think that’s a big reason why the initial offer to sit on the board and see how things would go over the next two years was something he wasn’t interested in.” Angelo Zino, Senior Industry Analyst at CFRA Research.

Twitter declined to comment for this story. Musk did not respond to a request for comment.

Twitter CEO Fate

Many analysts agree that Agrawal will likely be among those ousted when Musk’s takeover deal closes. Agrawal told employees on Monday that he was “optimistic” about the company’s future, but that he was Not really clear What kind of business relationship will he have with Musk? After it was announced that Agrawal would take over Dorsey in November, Musk tweeted an image comparing the new CEO to former Soviet leader Joseph Stalin.

“It’s hard for me to see a case where [Agrawal] “It’s unfortunate because I don’t think his tenure has been long enough to fully charge him,” said Daniel Neumann, principal analyst at technology research firm Futurum Research. … I think just from Musk’s comments, it’s pretty clear that he wants to It’s kind of going in a hard right direction in terms of where the strategy was.”

Parag Agrawal was Twitter's CEO only four months ago, but many of the company's followers predict he is unlikely to stay in that role if Musk's acquisition is completed.
In some ways, the leadership change – if it happens – may reflect Twitter’s long struggles to turn its powerful user base and outsized influence in the worlds of media and politics into a healthy business, according to Wedbush analyst Dan Ives. Twitter (TWTR) The shares are currently trading only 15% higher than their IPO price nearly 10 years ago, compared to competitors. Facebook (FB) whose stock gained 273% over the same period.
Musk is also likely to seek to change the internal culture of Twitter to better align with Musk company vision.

It is not clear exactly what this vision is. On the one hand, Musk said he wanted to “unlock Twitter’s ‘massive potential.’ But on the other hand, he said the acquisition was not about the money and made suggestions for the platform, such as removing content restrictions, that could conflict with Twitter’s core ad revenue model. Whatever his plans may be. Musk will certainly want to stack the company’s management team with leaders who are on the same page.

“He’ll hire people who understand his vision and who understand the kind of business and product and culture he’s trying to create,” Newman said. “There is no doubt that this would be a 180 degree cultural shift. Tesla is known for being a very challenging culture, very demanding of people, [while] Twitter was seen as a kind of soft culture, more thinking about people and obviously very attentive to a lot of social issues. …I think Musk would be very wise to make sure he ranks talents that he thinks can help him move forward with his mission.”

Billionaire Bromance?

Even if Musk cleans up Twitter’s house, the Tesla and SpaceX CEO is unlikely to want to run Twitter himself, at least not for long, given his many commitments.

He’s also sure to learn quickly about the not-so-fun parts of being a social media CEO. Such a role faces intense scrutiny and the risks of being subpoenaed to lawmakers about decisions around harmful content, data privacy, and more. Indeed, musk received a warning From EU Commissioner Thierry Breton, Twitter must comply with tough new European standards for content moderation or face fines or even a possible ban.
Twitter focused on & # 39;  Healthy conversations.  & # 39;  Elon Musk can change that

Musk may want to avoid putting himself in this position, given how reliant his other companies are on government contracts.

Many of the company’s followers are now speculating about whether Musk might encourage Dorsey – who stepped down as CEO in November and is due to leave the board in May – to return to a leadership position at Twitter after the deal is completed. While the Twitter co-founder also has other things on his page as CEO of financial services firm Block, Musk and Dorsey seem to get along, and may agree on a vision for the platform.

The two eccentric, billionaire, and crypto-loving tech giants have exchanged friendly notes on Twitter over the years. When Twitter was facing pressure from an activist investor in 2020, Musk tweeted: “I just want to [to] I say I support Jack as the CEO of Twitter. He has a ❤️ good.” Recently, Musk complimented Dorsey’s new ‘Blockhead’ moniker on Block.

Monday night, Dorsey replied To Musk’s planned acquisition of Twitter in a somewhat encrypted thread of tweets, which began with a link to Radiohead’s song “Everything in the Right Place.”

“Elon’s goal of creating an ‘ultimately trusted and broadly inclusive’ platform is the right one,” Dorsey said. “This is the right way…I think so with all my heart.”

Dorsey also noted that Twitter was “my only problem and my biggest regret,” saying, “It’s owned by Wall Street and the advertising model. Getting it back from Wall Street is the right first step.”

In recent weeks, Dorsey has criticized Twitter’s board of directors and suggested it contests its position as a public company.

“It wants to be a public good at the protocol level, not a corporation,” Dorsey said. “Solving the problem of being a company however, Elon is the only solution I can trust.”

In some ways, Dorsey’s return under Musk might seem a surprise. One of the founders of Twitter has overseen the platform through many of its struggles to grow its user base and increase profits. Dorsey has also undoubtedly had at least some influence on the current Twitter culture, which Musk may be trying to fix. Twitter said Dorsey was responsible for several of the company’s biggest and most controversial decisions, most notably deleting the account of former President Donald Trump, which Musk appears to oppose.

Still, if Musk plans Twitter Newman said that consistent with “what Dorsey saw in the company but lost his grip on over the years, it might be a fun way for him to go back and run the company he’d always envisioned working but didn’t have the support to do.”