What Does Elon Musk's $44billion Twitter Buyout Mean for Brands and Marketers?

Elon Musk’s Twitter buyout is likely to lead to changes on the social media platform. The Tesla CEO’s $44billion bid has been accepted and there’s plenty of speculation about what his plans for the microblogging site might entail.

While Musk has well-publicized opinions on free speech and has already said that former US president Donald Trump should have his profile reinstated, much still remains unclear. Social media, however, has become an important part of brands’ marketing strategies and any new approach will impact how businesses engage with their audience.

Who will run Twitter?

The biggest unanswered question is who will be doing the day-to-day running of Twitter once Musk’s buyout is complete. While, as the owner of the platform, he will undoubtedly have some influence, the management structure will also have a large part to play in changes that are made.

Presently, the CEO of Twitter is Parag Agrawal, but he has only been in the role for a matter of months, having taken over from co-founder Jack Dorsey. He works alongside a board of directors headed up by Salesforce co-CEO Bret Taylor.

It seems unlikely the composition of Twitter’s management team will stay the same under Musk, but whether he is directly involved is yet to be determined. His decision to be hands-on or hands-off could have the biggest impact on the platform so far in its history. We do know he has already posed questions to his 83 million-plus followers on potential changes, such as adding an edit button.

Reactions to the buyout from marketers

There’s been a mixed reaction to Musk’s Twitter buyout from marketers who use the platform on a regular basis to achieve their goals and KPIs. While Musk’s call for free speech has some admirers, others who have invested heavily in marketing efforts on the platform worry it could usher in a new era of misinformation, fake accounts and abuse.

This could have huge implications for brand safety and suitability, with some marketers preparing to walk away from the platform. Should there be a mass exodus from Twitter, it will be interesting to see whether these brands stay away long term or return once the dust has settled.

Musk’s hatred for ads and desire to relax content moderation policies are likely to have a huge impact on social media marketing strategies. Even if he allows ads to continue to be featured on Twitter, brands may be less inclined to invest in them when the controls to prevent them appearing next to hate speech or misinformation are no longer in place.

Should brands stay or go?

A poll for PRWeek US asked whether brands will leave Twitter now that Musk has bought it. While 55.9% of respondents said that businesses won’t abandon the platform because the audience is too large, 28.8% thought it was too soon to tell.

Seeing as Musk has not made clear what his plans for Twitter are, the 15.3% who qualified their yes with a “if he goes power mad” demonstrate that his actions will have an impact on marketers’ decisions. Those who do step away from Twitter will have to decide where to spend their resources and budgets instead for the best returns.