Elon Musk to Buy Twitter for $44B and Relax Speech Rules

Elon Musk reached an agreement to buy Twitter for roughly $44 billion on Monday, promising a more lenient touch to policing content on the social media platform where he – the world’s richest person – promotes his interests, attacks critics and opines on a wide range of issues to more than 83 million followers.

The outspoken Tesla CEO has said he wanted to own and privatize Twitter because he thinks it’s not living up to its potential as a platform for free speech.

Musk said in a joint statement with Twitter that he wants to make the service “better than ever” with new features while getting rid of automated “spam” accounts and making its algorithms open to the public to increase trust.

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” the 50-year-old Musk said, adding hearts, stars and rocket emojis in a tweet that highlighted the statement.

The more hands-off approach to content moderation that Musk envisions has many users concerned that the platform will become more of a haven for disinformation, hate speech and bullying, something it has worked hard in recent years to mitigate. Wall Street analysts said if he goes too far, it could also alienate advertisers.

Twitter said the transaction was unanimously approved by its board of directors and is expected to close in 2022, pending regulatory sign-off and the approval of shareholders.

After the deal was announced, the NAACP released a statement urging Musk not to allow Trump, the 45th president, back onto the platform.

“Do not allow 45 to return to the platform,” the civil rights organization said in a statement. “Do not allow Twitter to become a petri dish for hate speech or falsehoods that subvert our democracy.”

As both a candidate and president, Trump made Twitter a powerful megaphone for speaking directly to the public, often using incendiary and divisive language on hot-button issues. He was permanently banned from the service in the aftermath of the Jan. 6 storming of the Capitol.

Trump’s allies, including his son Donald Trump Jr., have previously pleaded for Musk to buy out the company.

“If Elon Musk can privately send people into space I’m sure he can design a social network that isn’t biased,” Trump Jr. said in the caption of a video posted to Instagram last April.

Musk has described himself as a “free-speech absolutist” but is also known for blocking or disparaging other Twitter users who question or disagree with him.

In recent weeks, he has proposed relaxing Twitter content restrictions – such as the very rules that suspended Trump’s account – while ridding the platform of fake “spambot” accounts and shifting away advertising as its primary revenue model. Musk believes he can increase revenue through subscriptions that give paying customers a better experience – possibly even an ad-free version of Twitter.

Asked during a recent TED interview if there are any limits to his notion of “free speech,” Musk said Twitter would abide by national laws that restrict speech around the world. Beyond that, he said, he’d be “very reluctant” to delete posts or permanently ban users who violate the company’s rules.

It won’t be perfect, Musk added, “but I think we want it to really have the perception and reality that speech is as free as reasonably possible.”

The big question now is how far Musk wants to ratchet back policing content – and whether users and advertisers will stick around if he does.

Even now, Americans say they’re more likely to be harassed on social media than any other online forum, with women, people of color and LGBTQ+ users reporting a disproportionate amount of that abuse. Roughly 80% of users believe the companies are still doing only a “fair or poor” job of handling that harassment, according to a Pew Research Center survey of U.S. adults last year.

Advertisers, currently Twitter’s main customers, have also pushed for the stronger content rules Musk has criticized. Keeping them happy requires moderation limiting hate speech so that brands aren’t trying to promote their products next to “calls for genocide,” said Siva Vaidhyanathan, a media studies professor at the University of Virginia.

“If Musk either fires or drives away the team at Twitter that’s committed to keeping it clean and making it less hate-filled, he’ll see an immediate drop in user activity,” said Vaidhyanathan. “I think he’s going to find pretty fast that inviting the bigots back in is bad for business.”

Some users said Monday that they were planning to quit the platform if Musk took it over. To which he responded on Twitter: “I hope that even my worst critics remain on Twitter, because that is what free speech means.”

Musk has also run into trouble with federal officials as a result of his own tweets, some of which he’s used to taunt regulators at the Securities and Exchange Commission.

In one August 2018 tweet, for instance, Musk asserted that he had the funding to take Tesla private for $420 a share, although a court has ruled that it wasn’t true. That led to an SEC investigation that Musk is still fighting. More recently, Musk appeared to have violated SEC rules that required him to disclose that he’d acquired a 5% stake in Twitter; instead he waited until he had more than 9%. Experts say these issues aren’t likely to affect his Twitter acquisition.

While Twitter’s user base of more than 200 million remains much smaller than those of rivals such as Facebook and TikTok, the service is popular with celebrities, world leaders, journalists and intellectuals. Musk himself is a prolific tweeter with a following that rivals several pop stars in the ranks of the most popular accounts.