Elon Musk and Advertiser Concerns at Twitter

No one expected Elon Musk’s acquisition of Twitter for $44 billion, or $54.20 per share, to go smoothly after the deal was called off, the courts became involved, the transaction was rekindled and a poop emoji was thrown. And Musk certainly did not disappoint late Thursday. The self-proclaimed chief twit punctuated his busy day with an 11:49 p.m. ET tweet saying simply, “The bird is freed.” Now, the new owner has the unenviable task of maintaining his free-speech-absolutist stance while trying to appease advertisers. “Now that Musk has realized he needs Twitter advertisers, big staffing cuts in Twitter’s ads department are unlikely … Twitter’s ad business is already on shaky ground," Insider Intelligence principal analyst Jasmine Enberg told Adweek. "Uncertainty arising from the weak economy and Musk’s erratic behavior has led to advertiser pullback." Pew: More US Adults Under 30 Than Ever Trust News Via Social Media In a Thursday-morning tweet addressing Twitter advertisers, Musk clarified his reasons for acquiring Twitter and touched on content moderation and relevant advertising. “I also very much believe that advertising, when done right, can delight, entertain and inform you; it can show you a service or product or medical treatment that you never knew existed, but is right for you," read the tweet. "For this to be true, it is essential to show Twitter users advertising that is as relevant as possible to their needs. Low-relevancy ads are spam, but highly relevant ads are actually content.” Musk said he did not buy Twitter to make more money, but advertising accounted for roughly 91% of the company’s second-quarter-2022 revenue—$1.076 billion out of $1.177 billion—and it's unlikely that he acquired the platform to hemorrhage money. Not long after Musk closed the deal, Twitter CEO Parag Agrawal and CFO Ned Segal left the company. "The work isn’t complete, but we made meaningful progress," Segal tweeted Friday morning. Twitter's chief customer officer Sarah Personette continues on in her role, writing Thursday that she'd had "a great discussion with Elon Musk," adding, "Our continued commitment to brand safety for advertisers remains unchanged. Looking forward to the future!" The brand safety sentiment is leaving some, including advocacy groups, questioning exactly how far Musk will go to foster brand safety so ad buyers will maintain or even increase their spend. “Despite his claim that he wanted to buy Twitter to ‘help humanity,’ Elon Musk has a record of posting and defending harmful anti-LGBTQ+ content, as well as content that harms other marginalized communities," LGBTQ+ advocacy organization GLAAD said in a statement. The Stop the Deal coalition—which was formed in June by groups including Accountable Tech, Media Matters for America, MoveOn and UltraViolet to warn of the dangers of Musk acquiring Twitter—added in a statement, “Elon Musk’s plans for Twitter will make it an even more hate-filled cesspool, leading to irreparable real-world harm. Musk’s plans will leave the platform more vulnerable to security threats, rampant disinformation and extremism just ahead of the midterm elections." “More and more consumers are demanding that brands take a stance and show their colors in their actions," Zarnaz Arlia, chief marketing officer of Emplifi, told Adweek. "Will we see Musk's digital town square embracing free speech for all at the risk of losing brand ad dollars? Or will he nurture advertisers by continuing to invest in measures to make sure that Twitter doesn't become a ‘free-for-all hellscape?’" Musk began his first full day as the owner of Twitter Friday with a tweet saying, "Spoiler alert: Let the good times roll.” "One thing's for sure: The next few months will be interesting for Twitter," added Arlia.

Merger & Acquisition News

Can Official ‘Chief Twit’ Elon Musk Juggle Free Speech and Advertiser Concerns?

A C-suite purge Thursday night claimed CEO Parag Agrawal, CFO Ned Segal, trust and safety lead Vijaya Gadde, general counsel Sean Edgett

David Cohen

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David Cohen