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The TwitterMusking and other news • ZebethMedia

Lo, the day is upon us: Elon Musk owns the bird app and all that comes with it. Musk’s $44 billion Twitter acquisition has closed, and he fired most of the top people in charge and is now busy learning about this thing he sort of wanted, then didn’t want at all, and now has been at least in part forced to spend a large fortune on. This week I talk with Taylor Hatmaker about the Twitter’s new owner and what it means. I also talk to Amanda Silberling about YouTuber MrBeast’s business, and why a billion-dollar-plus valuation for it makes us nervous. Plus, Kirsten Korosec comes on to talk about the scoop of the week after she broke the news that Argo is shutting down. Be sure to find us and subscribe on Apple Podcasts, Spotify or your podcast app of choice, leave us a rating and a review.

Elon Musk says Twitter will form a ‘content moderation council’ before deciding on Trump • ZebethMedia

Elon Musk has only been in control of Twitter for a short time, but he’s already making big moves. Musk fired a number of key executives on day one including Twitter CEO Parag Agrawal, but in a new tweet he claims he’ll be moving more slowly when it comes to making content moderation decisions. Musk hasn’t said much since taking over at Twitter, but he will apparently form some kind of policy advisory body to oversee content moderation decisions. Musk said the group will reflect “diverse viewpoints” though we’ll certainly have to wait and see on that one. Twitter will be forming a content moderation council with widely diverse viewpoints. No major content decisions or account reinstatements will happen before that council convenes. — Elon Musk (@elonmusk) October 28, 2022 Importantly, Musk says he won’t be making any major decisions or account reinstatements— i.e. restoring former President Donald Trump — before the council is put in place. Because it’s Musk that might happen within hours or it might not happen at all, it’s hard to say. On Thursday, Musk also let go of Vijaya Gadde, a well-respected top policy executive at the company who helped it navigate complex legal and moderation issues for more than 11 years. Getting rid of Gadde was a signal that a new era with different decision making is beginning, for better or worse. The tweet is likely more balm for skittish advertisers wary of Musk immediately turning the platform into an anything-goes mess of harassment, hate and misinformation. While Twitter arguably already meets that description with existing levels of moderation in place, advertisers are watching for any major shifts in the kind of content allowed on the platform and how it might adversely affect their brands. Musk might think this is an original idea, but Twitter already consults a trust and safety council to advise its product and policy decisions. The council — it’s already called a council — consisted initially of 40 organizations and experts that advised it in challenging policy areas. That group served in more of an advisory capacity, and unlike with Meta’s Oversight Board, it wasn’t designed to create binding decisions. First announced in 2016, Twitter expanded the entity in 2020 to form groups dedicated to specific difficult topics, including safety and online harassment, digital rights, child sexual exploitation and suicide prevention. “A lot of what we currently do, such as ongoing meetings with NGOs, activists and other organizations is always part of our process, but we haven’t done enough to share that externally,” Twitter wrote at the time. It’s possible Musk has something more like the Oversight Board in mind when it comes to content moderation decision making, but everything from the people who wind up serving on a hypothetical council to the nature of the group’s impact is likely to be controversial.

India to create committees with veto power over social media content moderation • ZebethMedia

India will set up grievance committees with the veto power to reverse content moderation decisions of social media firms, it said today, moving ahead with a proposal that has rattled Meta, Google and Twitter. The panels, called Grievance Appellate Committee, will be created within three months, it said. In an amendment to the nation’s new IT law that went into effect last year, the Indian government said any individual aggrieved by the social media’s appointed grievance officer may appeal to the Grievance Appellate Committee, which will comprise a chairperson and two whole time members appointed by the government. The Grievance Appellate Committee will have the power to reverse the social media firm’s decision, the government said. “Every order passed by the Grievance Appellate Committee shall be complied with by the intermediary concerned and a report to that effect shall be uploaded on its website,” New Delhi said in a statement. Shortly after India proposed creating such panels, the US-India Business Council (USIBC), part of the U.S. Chamber of Commerce, and U.S.-India Strategic Partnership Forum (USISPF), both raised concerns about the independence of such committees if the government controlled their formation. Both the firms represent tech giants including Google, Meta and Twitter. (More to follow)

Twitter will be delisted from the New York Stock Exchange on November 8 • ZebethMedia

Twitter’s stock will be delisted from the New York Stock Exchange and become a private company on November 8, according to a new filing with the U.S. Securities and Exchange Commission. This comes a day after Elon Musk completed the company’s takeover after a lengthy ordeal. “The New York Stock Exchange hereby notifies the SEC of its intention to remove the entire class of the stated securities from listing and registration on the Exchange at the opening of business on November 08, 2022, pursuant to the provisions of Rule 12d2-2 (a),” the filing reads. It also indicated that the merger between Twitter and Musk’s subsidiary X Holdings II, Inc was complete. “The merger between Twitter, Inc. and X Holdings II, Inc., a wholly owned subsidiary of X Holdings I, Inc., wholly owned by Elon R. Musk became effective on October 27, 2022. Each share of Twitter, Inc. Common Stock was exchanged for USD 54.20 in cash, without interest and less any applicable withholding taxes. The Exchange also notifies the Securities and Exchange Commission that as a result of the above-indicated conditions this security was suspended from trading before market open on October 28, 2022.” At the time of writing, Twitter’s stock was trading at $53.70 — slightly lower than Musk’s buying price of $54.20. The story is developing…

Elon Musk will reportedly take the CEO role after exec exodus • ZebethMedia

After Elon Musk completed his Twitter takeover, multiple reports and tweets from company employees suggested that he fired CEO Parag Agrawal, CFO Ned Segal, general counsel Sean Edgett, and head of legal policy, trust and safety Vijaya Gadde were leaving the company immediately. Now he might take over the top job — at least for now. A report from Bloomberg suggested that Musk will take up the CEO position, but will hand it over to someone else in the long term. As a CEO he will have to take care of different challenges like user growth, revenue growth and content moderation hurdles. Agrawal, who took over from Jack Dorsey last year after the Twitter co-founder left the company, has had a strenuous relationship with Musk. The Tesla CEO famously tweeted a poop emoji in reply to Agarwal’s lengthy thread about spam on the platform. The process leading up to the Twitter v. Musk trial revealed a trove of texts between different investors and executives. While Agarwal and Musk began their conversation cordially, their relationship soured over time. Bloomberg’s report also mentioned that Musk plans to lift lifelong bans on users. Twitter famously banned former President Donald Trump last year for breaking the platform’s rules and over the “risk of further incitement of violence” following the U.S. Capitol attack. This step of unbanning all users might draw mixed reactions across the political spectrum, and will test the billionaire’s efforts as to how far he wants to go to make Twitter the “digital town square” he wants it to be. We have heard a lot about Musk’s ideas as the top man of Twitter. That included suggestions of building “X, an everything app” to monetizing tweets in different ways. There has been a lot of uncertainty around how the Tesla CEO will handle layoffs and restructure teams at the social network during the course of the whole takeover deal starting from April. While Twitter’s CEO, CFO, and top lawyers were fired today, several top executives including former GM of consumer, Keyvon Beykpour and former revenue product lead Bruce Falck have left the company since Musk initiated the deal. Given so many empty seats at top management, Musk has to bring in some top talent to execute things he wants to achieve at Twitter.

Elon Musk fired top Twitter execs including CEO, reports say • ZebethMedia

Elon Musk fired key Twitter executives Thursday, one of his first moves as the official owner of the social media platform. According to reports from the New York Times, CNBC, the Wall Street Journal, the Washington Post and other outlets, Musk fired CEO Parag Agrawal, CFO Ned Segal, general counsel Sean Edgett, and head of legal policy, trust and safety Vijaya Gadde. The deal is done, according to multiple sources, which is what gave Musk the mandate to clean house among the executive ranks. The Tesla CEO had previously criticized Gadde on the platform, and he has also tangled with Agrawal with the two exchanging messages that indicated a falling out as revealed by chat logs disclosed in discovery in the legal battle between the billionaire and the social network. This story is developing…  

Elon Musk tells advertisers that Twitter cannot become “a free-for-all hellscape” • ZebethMedia

Elon Musk published a note addressed to Twitter advertisers on his account this morning, the day before his court-ordered deadline to close his $44 billion acquisition of the social media platform. In the short address, Musk — who is currently in San Francisco and spending the week at Twitter HQ — explains to Twitter advertisers why he is motivated to buy the platform. “There has been much speculation about why I bought Twitter and what I think about advertising,” Musk wrote. “Most of it has been wrong.” Musk repeated some of the primary talking points that he has been stating since he first announced the acquisition in April. He believes in Twitter’s potential as a “common digital town square,” but he is worried that “social media will splinter into far right wing and far left wing echo chambers” as traditional media continues toward its “relentless pursuit of clicks.” “That is why I bought Twitter. I didn’t do it because it would be easy. I didn’t to it to make more money,” he explained. “I did it to try to help humanity, whom I love.” None of these declarations are particularly illuminating — Musk said in April that he “doesn’t care about the economics” of buying Twitter.  Spending $44 billion on a struggling business isn’t the greatest business move, but it’s something that you can accomplish out of a sense of warped obligation to humanity when you are the richest guy on the planet (and eventually on our neighboring red planet too, probably). But Musk actually slipped in something here that is mildly reassuring, though it’s generally a challenge to take him at his word. Musk has continually touted the importance of free speech in his acquisition of Twitter, even mentioning it in his letter to the company board when he first announced his intent to acquire the platform. “I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in April. “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form.” “… Twitter has extraordinary potential,” he added. “I will unlock it.” Yet Twitter’s existing content guidelines aren’t as stringent as his declarations would lead you to believe. Beyond prohibiting illegal activity, the platform bans hateful conduct (attacking or threatening people based on race, ethnicity, gender, sexual orientation, religion, disability, etc.), depictions of graphic violence, promotion of suicide or self-harm, etc. The platform doesn’t even censor pornographic content, so long as it doesn’t appear in a live video or a profile header. In today’s letter, though, Musk seems to be somewhat aware of the fact that “anything goes!” is a content moderation policy that’s doomed to fail. “Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!” he wrote. “In addition to adhering to the laws of the land, our platform must be warm and welcoming to all, where you can choose your desired experience according to your preferences, just as you can choose, for example, to see movies or play video games ranging from all ages to mature.” It’s unclear how he plans to make Twitter “warm and welcoming,” though, without flouting content guidelines that aim to protect the most vulnerable users on the platform. He ends the letter by telling advertisers that Twitter aspires to “be the most respected advertising platform in the world that strengthens your brand and grows your enterprise.” Finally, I have to take a cheap shot… Musk did not use alt text when posting these three text-heavy screenshots of his letter to advertisers this morning. To be fair, most people I follow don’t regularly use alt text (but they should!), so this is a good chance to call our presumptive bird app overlord in. Hey, Elon! If you really want Twitter to be a public town square, you should use alt text to make sure that people with vision-related disabilities can engage in the conversation too!

Now Elon Musk says he won’t fire 75% of Twitter’s staff • ZebethMedia

Elon Musk told Twitter employees Wednesday that he’s not planning on laying off 75% of staff when he takes over the company, Bloomberg reports, citing “people familiar with the matter.” This is a walk back from what Musk reportedly said last week. The celebrity executive denied the previously reported number when he addressed employees at Twitter’s San Francisco office on Wednesday. The “Chief Twit” as his Twitter profile now describes, posted a video of himself walking into Twitter headquarters before the meeting holding a sink with the caption “Let that sink in!” Musk has casually made mention of laying off staff when he takes over Twitter, a $44 billion deal that’s expected to close on Friday. However, immediately losing 75% of Twitter’s staff, or about 5,600 employees, would probably leave the social media company inoperable. Twitter employees are still anxious about expected staff cuts as part of the takeover, according to the report.

Elon Musk is at Twitter HQ • ZebethMedia

Shortly after changing his bio to “Chief Twit,” Elon Musk posted a video of himself walking into Twitter’s San Francisco headquarters. “Entering Twitter HQ — let that sink in!” he wrote. The video depicted him walking into the office holding a sink, referencing a years-old, stale meme, as is par for the course with him. Last week, the Washington Post reported that Musk plans to lay off 75% of Twitter’s staff if he takes over. So, it’s a bold gesture to walk in with a kitchen sink when you’re likely going to axe 5,600 jobs. Why is Musk at Twitter HQ? Per instructions from Judge Kathaleen McCormick, who is presiding over the Twitter v. Musk case, the billionaire entrepreneur has until this Friday to close his $44 billion acquisition of Twitter. Musk previously had tried to back out of the deal, stating that Twitter had lied about the amount of bots on the platform. If Musk’s presence at Twitter HQ is any indication, it looks like he’s getting close to making this thing final. Musk reportedly spoke with bankers on Friday as part of the final steps before getting the cash. These banks are said to be providing $13 billion in debt financing to help with the deal. According to Bloomberg, Twitter’s head of people and chief marketing officer Leslie Berland sent a memo to staff saying that Musk will address staff directly on Friday, the deadline for the deal to close. Musk was dead set on getting out of this deal, so why the sudden change of heart? A few weeks before court proceedings were to begin, the court published a trove of Musk’s texts about the deal, uncovered through the discovery process. In the messages, his certainty about the deal waned as economic conditions worsened around the world. Another twist came when Judge McCormick approved Twitter’s request to review texts from Musk’s inner circle related to a mysterious anonymous email that Musk’s lawyer Alex Spiro received on May 6. In the email, which was sent through ProtonMail, the sender identified themself only as a former Twitter executive and asked Musk’s team to follow up on a different platform. So, Musk could be going through with the deal because he’s hiding something — or, he could have just realized he was definitely not going to win at trial. Perhaps the rising stock price of Twitter helped seal the deal, too. Right now, the stock is trading at about $53 per share, the highest it has been all year. Then again, this whole deal has been a complete fiasco since the moment Musk announced his intent to buy the platform in April, so let’s not count our chickens until the SEC filing has hatched. If you work at Twitter and have inside information, or want to anonymously share your reaction to Musk’s potential takeover, DM me on Signal, an encrypted messaging app, at 929 593 0227.   

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