Twitter Inc (NYSE:TWTR)
Elon Musk, who famously tweeted, “I hate advertising,” has stated his desire to make Twitter Inc (NYSE:TWTR) “the most recognized advertising platform” to win over advertisers before he finalizes his $44 billion purchase of the social media company. Due to this, Twitter stock surged today.
At one point, Musk, Jack Dorsey (co-founder of Twitter), and the financiers involved in the purchase proposed ditching advertising in favor of subscription fees and alternative models. Concerns over the merger have been voiced by advertisers, Reuters reports.
“It’s been speculated about why I purchased Twitter and what I think about advertising. This is mostly false, “Musk said in a Thursday tweet.
Twitter stock ultimate goal is to become “the most renowned advertising platform in the world,” which will help build your brand and business.
If top Twitter content producers aren’t paid at least as much as they are on other social media platforms, then they should be. “Absolutely,” Musk said in response to a similar post.
Over 90% of Twitter’s income in the second quarter came from advertising. Reuters reported earlier this week that the firm was having trouble holding on to its most active users.
That’s even more of a hurdle for Musk, who visited Twitter’s San Francisco offices on Wednesday and changed his bio to “Chief Twit,” implying he may be the company’s CEO.
Musk said he hoped Twitter would become “a shared digital town square, where a wide variety of opinions may be argued healthily, without resorting to violence” in a series of tweets sent on Thursday.
Former U.S. President Donald Trump was banned from the microblogging site Twitter in January of last year due to the possibility of further inciting violence following the storming of the U.S. Capitol. The self-described “free speech absolutist” declared he would restore the ban in May.
Despite Trump’s repeated denials that he would ever return to the social media site, the debate over whether or not he should be reinstated has become a litmus test for how far Musk is willing to go in making reforms.
The conclusion of the Twitter contract would finish a drama that has lasted over the last six months. According to the New York Stock Exchange’s website, Twitter stock will be unavailable for trade on Friday.
Musk’s comments that he wants Twitter to be the “most respected advertising platform” boosted Twitter’s stock price.
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