You may be a person thinking that this is just another article regarding the news that Elon Musk bought Twitter. But we are not going just to present the news here. There is a lot more to this startling announcement that Elon Musk bought Twitter shares. It is going to have a major impact in terms of regulations, free speech, and privacy. This is all in case the purchase goes along smoothly with all the regulators. So, let us now dive into the news that Elon Musk bought Twitter shares without any further ado.
Former CEO Jack Dorsey tweeted, " I love Twitter. Twitter is the closest thing we have to global consciousness. The idea and service matter to me, and I will do whatever it takes to protect both. Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step. In principle, I don't believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving the problem of it being a company, however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness. Elon's goal of creating a maximally trusted and broadly inclusive platform is the right one. This is also @paraga's goal and why I chose him. Thank you both for getting the company out of an impossible situation. This is the right path. I believe it with all my heart."
The Tesla founder Elon Musk has finalized the terms of his deal with the board of Twitter to purchase the firm and make it private. The firm has a critical role in overall public discourse around the globe. This is more so in the space of crypto. The impending takeover of the platform from Elon Musk is worth noticing for nearly everyone around the globe. The people involved in Crypto Twitter have certainly taken notice. The social media giant has been mainly focused on what the news that Elon Musk bought Twitter means for free speech. There was also something else that caught the eyes of many in the press release that was released to announce the purchase. Elon Musk said he wanted to make the site a better place by authenticating all the people using it. This can mean that he intends to eliminate all the anonymous accounts in place on the site presently. But experts are unsure how this is going to pan out in actual practice.
The method of authentication may mean that the site will take some type of personally identifiable data. But most users will not mind if it is as easy as filling out a captcha or checking a box. But it may become another scenario if the authentication leads to checking a credit card, passport, or license to properly verify the person's identity and understand that it is not a bot operating the account. The site has been through some breaches in cybersecurity in the past. So the implications of the site collecting such personal data may be questionable for many people. There are a huge number of users on the site that are anonymous or pseudonymous for a lot of reasons. This ranges from only wanting to harass or troll people to having fears of posting something under their real identities.
People keen on finding out about the activists or dissidents may attempt to get some influence over Elon Musk in ways that the site could not be influenced before. There are a lot of people who may not have the kind of access to identifications that may be required. The solution regarding authentication will also have to take these users into account. Elon is known for not liking bots and the overall role on social media. So, it will be logical for him to give his attention to this crucial issue. It is a major issue for many people using the site. Authenticating all the accounts is one method of addressing that. On the contrary, Elon Musk has also stated that he wants to make the algorithms that run Twitter open source. It will not cause a major change in the way the site is run. He has not ensured that he will also make the data public that the algorithms used for their decision making.
But that is where the actual information lies. Also, it is not easy to sync the decision to open source with the plan to shut down bots. Experts believe that open source algorithms make it very easy to create bots. In a recent TED conference, Elon hinted that any content on social media should not be moderated too harshly. He has also tweeted after the deal. Elon said, "If in doubt, let the speech exist. If it's a gray area, I would say, let the tweet exist. But obviously, in the case where there are perhaps a lot of controversies, you would not necessarily want to promote the tweet. [Twitter is] a digital town square where matters vital to the future of humanity are debated. I hope that even my worst critics remain on Twitter because free speech means".
The one issue we have here is regarding the role of the Securities and Exchange Commission. This leads to the questions that have been posted earlier in this article. Elon Musk has not actually purchased the firm yet. Musk and the board of Twitter have mutually consented to a transaction whereby Elon will get the firm and make it private. But according to the CEO of the firm, it can take nearly half a year to do that. There are a lot of things that can happen during that time. It may even happen that Elon Musk may change his mind. The possibility of that happening cannot be ruled out. Some of the forms of the commission make it clear that if stockholders or regulators sue or it turns out that Elon cannot leverage his own equity, then the deal may not happen. But these conditions are not so probable, based on what the experts are saying so far.
There is also a query regarding another form originally filed by Elon. That form has been created for passive investors. These people are not intended to have a role in attempting to influence the site. But the commission will have several queries about the sequence of events here. In terms of regulators, the European Union has quickly reminded Elon of its own take on the digital data on social media. Experts believe that the deal between Elon Musk and Twitter will be subject to strict regulatory supervision by the European Union. European Commissioner Thierry Breton has talked about the Digital Services Act. It is a new law that needs online platforms such as social media to account for the algorithms they use, protect the user's rights, and take down any illegal content.
He said, "Be it cars or social media, any company operating in Europe needs to comply with our rules – regardless of their shareholding." One of the forms of the commission states the probability of litigation and the "ability of each party to consummate the Transaction. Additional risks and uncertainties include those associated with: the possibility that the conditions to the closing of the Transaction are not satisfied, including the risk that required approvals from Twitter's stockholders for the Transaction or required regulatory approvals to consummate the Transaction, are not obtained."
Elon Musk buying Twitter is one of the major news of this year. Elon has made it practically a side hustle to play with the regulators in the past. So, the news that Elon Musk bought Twitter will place him in the forefront of the sights of these regulators. The development is going to be very entertaining. Hold on to your seatbelts.