In what was met with both excitement and apprehension, Elon Musk purchased X, formerly known as Twitter, a year ago. However, his first year as owner of the platform has been marred by controversies, financial losses, and a decline in trust from both users and advertisers. Let’s take a closer look at the tumultuous journey Musk has taken X on.
Sweeping Changes
Immediately after the acquisition, Musk wasted no time in implementing significant changes. He fired top executives, taking Twitter off the public market and making it a private company. The restructuring also included massive layoffs, reducing the workforce from 8,000 to fewer than 1,500 employees. This move was met with criticism and accusations of fostering a climate of fear within the company.
Shifting Priorities
Under Musk’s leadership, X underwent a rebranding, changing its name from Twitter to X. The globally recognized bird logo was replaced, signaling a departure from the platform’s familiar identity. Alongside the visual changes, Musk made controversial decisions regarding content moderation, allowing previously banned extremists back onto the platform and enabling the spread of viral but often inaccurate posts. These changes were defended by Musk in the name of free speech, despite concerns raised by fact-checking organizations such as PolitiFact.
The Israel-Hamas Conflict and Its Fallout
One of the defining moments of Musk’s tenure at X was the handling of the Israel-Hamas conflict. The platform’s response to this major crisis raised concerns among experts, who believed it highlighted the challenges of differentiating truth from fiction. Musk’s decisions were criticized for exacerbating the information crisis surrounding the conflict, leading to accusations of recklessness.
Lack of Trust and Safety
The European Commission initiated an investigation into X, citing the alleged dissemination of false information and terrorist content related to the Israel-Hamas conflict. While X’s chief executive, Linda Yaccarino, claimed the platform was committed to trust and safety, researchers expressed skepticism. They argued that X had abandoned efforts to elevate reputable news sources, further eroding trust in the platform.
One significant consequence of Musk’s leadership was the decline in X’s advertising business. Marketers became increasingly disillusioned with the platform, leading to a forecasted decrease in ad revenue for 2023. Insider Intelligence estimates that X’s ad revenue will drop to $2.98 billion, down from $4.14 billion in 2022. Musk attempted to monetize the platform by charging for previously free features, such as the coveted blue tick marks. However, these efforts did not compensate for the loss in ad revenue, leaving X in a precarious financial position.
It is evident that X has experienced a decline in its user base. Musk himself admitted that the number of daily active users had dropped by over 10 percent since he acquired the company. Frustrated with the changes and controversies, many users have left X and migrated to alternative platforms like Mastodon, Bluesky, and Threads in search of a more welcoming social media environment.
Rise of Extreme Right-Wing Content
Under Musk’s ownership, extreme right-wing content has flourished on X. Controversially, Musk reinstated Donald Trump’s account, bypassing efforts to combat misinformation about elections. Additionally, former Fox News host Tucker Carlson, known for his radical conservative opinions, found a new platform on X after being fired from the television station. Musk even hosted interviews with Republican US presidential hopeful Ron DeSantis and Israeli Prime Minister Benjamin Netanyahu, catering to the more mainstream right.
A Reckless Approach
Industry analysts point to Musk’s treatment of X as a technology to be remade in his vision, disregarding the platform’s core purpose as a social network fueled by users and advertising. This shortsighted approach is considered the major cause of advertiser exodus, user decline, and X’s diminishing status as a central hub for news. Jasmine Enberg, an analyst from Insider Intelligence, stated that X’s wounds are largely self-inflicted.
The Uncertain Future
As X enters its second year under Elon Musk’s ownership, the platform faces significant challenges. Rebuilding trust, attracting advertisers, and retaining users are all crucial tasks that lie ahead. Whether Musk can successfully navigate these obstacles remains to be seen. The troubled reign of X so far serves as a stark reminder of the consequences of reckless decision-making and neglecting the core values of a platform.
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