Catch up
A filing with the US Securities and Exchange Commission confirms that Elon Musk has taken over Twitter, and its shares have been taken off the New York stock exchange.
Here’s what you need to know:
A timeline of Musk’s Twitter acquisition: months of corporate to-and-fro, distrust and unpredictability
Some have expressed concerns about potential changes to Twitter’s content moderation policies now that it’s in the hands of the Tesla billionaire, while others celebrated how they expect the platform’s newly minted leader will handle content and speech on Twitter.
Hate speech and misinformation experts are bracing for the return of Donald Trump to the platform, as Elon Musk completes his acquisition of Twitter.
- Guardian staff
The twisty, drama-filled Elon Musk-Twitter saga: a timeline
The saga is over. Elon Musk has finally bought Twitter after months of to-and-fro marked by legal rows, U-turns and, inevitably, Twitter spats.
There will be more drama to come, by virtue of the platform’s centrality to news and politics as well as the unpredictable personality of its new owner. But the months leading up to the deal have been compelling corporate entertainment for bystanders. Here is a timeline of what happened:
After Musk’s takeover, the question on everyone’s mind is whether former president Donald Trump will be allowed to return to the platform after being permanently removed in January 2021.
Trump responded to the Twitter deal on his own platform, Truth Social, on Friday, stating he is “very happy that Twitter is now in sane hands”.
“Twitter must now work hard to rid itself of all the bots and fake accounts that have hurt it so badly,” he wrote. “I LOVE TRUTH!”
Musk seemed to allude to the question of whether Trump would return to the platform in a Tweet on Friday, stating that the platform would be forming “a content moderation council with widely diverse viewpoints” to address such issues.
Twitter will be forming a content moderation council with widely diverse viewpoints.
— Elon Musk (@elonmusk) October 28, 2022
No major content decisions or account reinstatements will happen before that council convenes.
Updated
Months before purchasing Twitter, Elon Musk said he believed the platform’s direct message feature should be end-to-end encrypted which would prevent anyone except the sender and recipient from accessing the messages.
Now, digital privacy group Fight for the Future has asked the newly minted social media platform owner to confirm his plan to secure Twitter’s messaging feature. Fight for the Future has previously launched a campaign pressuring all tech companies to encrypt their messaging services by default including Apple and Facebook.
Many have expressed concern about their privacy and security on Twitter now that Musk has taken over. End-to-end encryption would not only secure messages from the peering eyes of people inside the company but it would also make messages safe from hacks as well as law enforcement requests.
Hi @elonmusk just checking on this. Will you re-affirm that you plan to make Twitter DMs end-to-end encrypted? Can you please give a timeline for how soon this will happen? This is one of the most important things Twitter could do to protect human rights and free expression. https://t.co/WCLritjdiQ
— Fight for the Future (@fightfortheftr) October 28, 2022
Hi, it’s Maanvi Singh, taking over the blog from my colleague Gloria Oladipo.
Now that Elon Musk owns Twitter, does that mean he can access anyone’s Twitter data?
Vox had a good story on what happens to your DMs, and whether they’re safe from Musk:
Now, is Musk going to waltz into Twitter’s headquarters on his first full day (maybe holding a sink again), fire up his computer, and immediately set about reading all of your DMs, peering in on private accounts’ tweets, and harvesting users’ phone numbers? Probably not, and whether that happens at all depends on several factors, according to Andy Wu, a professor of business administration at Harvard Business School.
Twitter’s management team would first have to be amenable to fulfilling Musk’s requests. If not, he has to replace them. To do that, he’d have to go through the board of directors. It shouldn’t be too difficult to get them to agree to Musk’s demands, though. He reportedly fired several of Twitter’s top executives, including CEO Parag Agrawal and Vijaya Gadde, who was the head of legal, public policy, and trust and safety. The new CEO, Bloomberg says, is Musk himself. As for the board, based on the preliminary proxy statement filed with the Securities and Exchange Commission, Musk plans to install his own board immediately.
There are also whatever internal controls Twitter has — including those it’s supposed to have implemented per consent orders with agencies like the Federal Trade Commission (FTC) — that might get in Musk’s way. Musk would have to work with Twitter employees to get that data, and they might not be willing to help him read someone’s DMs. It’s hard to imagine Musk making such a request and that request not somehow being leaked to the press. And that would certainly be a disaster for a company Musk paid a lot of money for.
But even if Musk eventually does get his hands on the DMs of people he doesn’t like or wants to keep tabs on, the article argues that this isn’t the biggest security concern:
Twitter users should perhaps be concerned not about their data leaking to Musk but about their data leaking to everyone. Twitter’s track record when it comes to security already isn’t great, and Musk might be laying off employees who are essential to maintaining the protections it has that actually work (Musk has reportedly said he doesn’t plan to lay off that many people or that soon).
Read more from Vox’s Sara Morrison here.
Updated
Another helpful tidbit about free speech concerns and disinformation on Twitter under Musk’s rule from the Guardian’s Dan Milmo and Alex Hern:
Senior politicians have warned Elon Musk over content moderation on Twitter, with the EU stressing the platform will “fly by our rules” and a UK minister expressing concerns over hate speech under the billionaire’s ownership.
The EU’s internal market commissioner, Thierry Breton, wrote on the platform on Friday that “in Europe, the bird will fly by our rules”, in response to Musk’s earlier tweet saying “the bird is freed” in apparent confirmation that he had bought the business.
The EU is introducing the digital services act, which includes provisions for removal of illegal content including hate speech.
The UK government flagged its own concerns on Friday, as the environment secretary, Thérèse Coffey, said it would be “concerning” if a relaxation of content moderation led to a proliferation on hate speech on the platform.
Read the full piece here.
Here’s more info on the payout that ex-Twitter executives will receive amid Musk’s buyout from The Guardian’s Jasper Jolly:
Twitter’s top executives will be entitled to “golden parachute” payouts worth more than $120m if removed as expected by new owner Elon Musk.
Musk reportedly immediately removed chief executive Parag Agrawal, finance boss Ned Segal, and Vijaya Gadde, head of legal, policy and safety, after closing the $44bn takeover of the social network company.
The debt-funded deal has become a costly exercise even for Musk, the world’s richest man, thanks to the value of his stake in electric car manufacturer Tesla, with bankers, advisers and lawyers all racking up significant fees.
Legal costs in particular are likely to have run into the tens of millions of dollars after Musk in July tried to terminate the deal with Twitter, arguing that the company had misled him over the number of bot accounts on the social network. After months of legal wrangling Musk agreed this month to continue with the deal.
Read the full article here.
Former executives of Twitter who were fired after Musk bought Twitter have taken to the website to reflect on their experience working at the company.
From former chief financial officer Ned Segal:
Thursday concluded 5 years @twitter. I’m grateful for the opportunity to have worked with such an incredible group of people building the world’s town square for all of our stakeholders. The work isn’t complete, but we made meaningful progress.
— Ned Segal (@nedsegal) October 28, 2022
From former Twitter executive Patrick Pichette:
Taking the words out of my mouth for the leadership team, but also all the Tweeps that have served by our side through the years. With Gratitude, Patrick https://t.co/bW0feRVpxi
— Patrick Pichette (@pichette) October 28, 2022
Updated
Correction: A previous version of this post implied that Ye’s visibility on Twitter was a new development since Musk’s takeover. In fact, the rapper was never banned from the platform – his account was locked and still visible.
Following Musk’s takeover, speculation has begun how Ye, the rapper formally known as Kanye West, would engage with the platform following his suspension.
The artist previously had his Twitter account locked last month amid antisemitic comments and outbursts he made, though it is unclear if Musk’s takeover had anything to do with Ye’s account being visible again.
Ye’s remarks have cost the artist big, with several fashion and business associated with Ye vowing to never work with him again.
Ye was also locked from Instagram, owned by Meta, due to the offensive comments and outbursts he made. The decision prompted Ye to tweet about his supposed friendship with Meta owner Mark Zuckerberg.
Updated
Mark Cuban said today that he is happy with Musk’s Twitter takeover, calling the new owner a “ready, fire, aim entrepreneur”.
Quite the fan, Cuban shared now-viral tweets about Musk’s leadership and entrepreneurial traits shortly after the acquisition was announced:
I'm looking forward to the @elonmusk era on Twitter. He is a ready,fire,aim entrepreneur who will truly enjoy fucking with everyone who has an expectation of him. The only expectation you can have of @elonmusk is that he will flex his independence to show everyone who's in charge
— Mark Cuban (@mcuban) October 28, 2022
It's a unique asset that he will be able to take public the next time there is an insane bull market. He just needs to grow it profitably and he will make a killing
— Mark Cuban (@mcuban) October 28, 2022
Updated
Shortly after Musk’s takeover was announced, a bevy of anonymous Twitter profiles celebrated the purchase by espousing slurs and arguing that Twitter’s rules on hate speech did not apply.
Musk has repeatedly said he will promote more free speech on Twitter, claiming that the current algorithm deprioritizes certain content with little regard.
But Musk has pushed back against fears that the app will be less critical against bigotry and hate under his ownership.
From the Washington Post:
A wide range of anonymous Twitter accounts celebrated Musk’s takeover and argued it meant the old rules against bigotry no longer applied.
“Elon now controls twitter. Unleash the racial slurs. K---S AND N-----S,” said one account, using slurs for Jews and Black people. “I can freely express how much I hate n-----s … now, thank you elon,” another said.
In a tweeted letter Thursday, Musk had sought to soothe advertisers worried over the moderation changes by saying he did not want it to become a “free-for-all hellscape.”
But the first hours of his purchase have shown how difficult that promise could be. One account, created this month, included a Nazi swastika as its profile picture and retweeted quotes from Musk alongside antisemitic memes. Another tweet, showing a video montage glorifying Nazi Germany with the comment, “I hear that there have been some changes around here,” was liked more than 400 times.
Read the full article here (paywall).
With the Elon Musk twitter takeover now official, reactions have started pouring in on the app--ranging from the curious to the concerned.
From American singer-songwriter Erykah Badu:
@elonmusk what’s new with Twitter ? What can we expect . And can you buy this co. And bring this back ? Please . #blackberryBabe pic.twitter.com/Y7np0DhPvH
— ErykahBadoula (@fatbellybella) October 28, 2022
From Houston Chronicle reporter Dwight Silverman:
I cannot share this enough. @reckless nails it.
— Dwight Silverman (@dsilverman) October 28, 2022
Welcome to hell, Elon https://t.co/LKQoY7dDnJ via @Verge pic.twitter.com/Szhz8rfvc6
Here’s also a live shot from outside the Twitter HQ as the takeover was confirmed, provided by NowThis:
WATCH: Live shot outside of Twitter headquarters after Elon Musk has taken full control and ownership of the social media company. According to reports, Musk fired several executives, including CEO Parag Agrawal. https://t.co/gcXSUhbUT2
— NowThis (@nowthisnews) October 28, 2022
Summary
A filing with the US Securities and Exchange Commission confirms that Elon Musk has taken over Twitter, and its shares have been taken off the New York stock exchange.
Former US president Donald Trump said he was happy Twitter was in “sane hands”.
Senior politicians have warned Elon Musk over content moderation on Twitter, with the EU stressing the platform will “fly by our rules” and a UK minister expressing concerns over hate speech under the billionaire’s ownership.
Our other main stories today:
The US oil giants ExxonMobil and Chevron have announced huge profits, dwarfing Shell’s $9.5bn. Texas-based ExxonMobil’s profits tripled to close to $20bn in the third quarter, nearly matching Apple’s profits, while Chevron was $11.2bn in the black. President Joe Biden blasted Exxon for making “more money than God” in the summer.
Profits at the world’s biggest oil companies have soared to nearly £150bn so far this year as Russia’s war on Ukraine pushed up energy prices, according to estimates from analysts.
The German economy surprised with growth of 0.3% in the July to September quarter, defying fears of a recession. It eked out 0.1% growth in the previous quarter. However, annual inflation in Europe’s biggest economy jumped to 11.6% last month, with food prices up 20%.
Pre-tax profits at NatWest Group remained flat between July and September at £1.1bn, amid a worsening economic outlook and a cost of living squeeze on its customers, as the bank predicted UK house prices would fall by 7% next year.
Airline revenues at British Airways’ owner have returned to pre-Covid levels, the group has announced, as it increased its profit forecasts despite a summer of disruption.
Rail users have plenty of horror stories about their experiences and the train operator Avanti is on a deadline to fix its problems.
The UK’s biggest gas storage site has been brought back in time for what could be one of the tightest winters for years for energy suppliers trying to meet demand.
I am now handing over to our US team. Thank you for reading. – JK
Updated
SEC filing: Elon Musk has taken over Twitter, shares delisted
The SEC filing confirms that Elon Musk has taken over Twitter, and its shares have been taken off the New York stock exchange, reports our global technology editor Dan Milmo.
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.
Trump says he is happy to see Twitter 'in sane hands'
Former US president Donald Trump said today he was happy Twitter was in “sane hands” as Elon Musk finalised the $44bn takeover, but did not say whether he would return to his account on the platform that banned him.
Trump said he thought his own Truth Social media platform “looks and works better.”
“I LOVE TRUTH,” Trump wrote in a post on his platform. Trump was banned from Twitter after the deadly Jan. 6, 2021, attack on the US Capitol. Musk has said he would reinstate Trump’s account, but Trump previously said he would not return.
Updated
Here’s our full story on reactions from senior politicians to the Twitter takeover.
Senior politicians have warned Elon Musk over content moderation on Twitter, with the EU stressing the platform will “fly by our rules” and a UK minister expressing concerns over hate speech under the billionaire’s ownership.
The EU’s internal market commissioner, Thierry Breton, wrote on the platform on Friday that “in Europe, the bird will fly by our rules”, in response to Musk’s earlier tweet saying “the bird is freed” in apparent confirmation that he had bought the business. The EU is introducing the digital services act, which includes provisions for removal of illegal content including hate speech.
The UK government flagged its own concerns on Friday, as the environment secretary, Thérèse Coffey said it would be “concerning” if a relaxation of content moderation led to a proliferation on hate speech on the platform.
“I think that would be concerning and it’s important that people have these platforms [and] use them responsibly rather than to promulgate hate speech,” she told Sky News. Coffey added that the online safety bill, a landmark piece of legislation tackling online hate speech, will return to parliament next week. However, it is understood that the bill will remain on pause after the government delayed its passage again this week.
One internet safety campaigner said on Friday that the deal could “unravel” Twitter’s work on improving the platform, after reports that Musk has already fired the company’s head of legal policy, trust and safety, Vijaya Gadde.
As the deal is finalised, Musk tweeted in the last hour:
🎶 let the good times roll 🎶
— Elon Musk (@elonmusk) October 28, 2022
Twitter files for delisting of shares
Twitter has filed for a delisting of its shares, as the $44bn takeover by Elon Musk, the world’s richest man, is finalised.
Documents filed with the US Securities and Exchange Commission on Friday show an application for the shares to be withdrawn from the New York stock exchange, as its new owner takes the company private.
Updated
Researcher Joan Donovan recently looked at why the super-rich are buying social media sites? From Trump to Kanye and Musk.
Tech CEOs have become the most crucial political gatekeepers in modern media history. Not by running for office – a cliche for today’s moneyed elite – but by using social media ownership as a proxy for political influence.
It’s a trend years in the making. From the political largess of former Facebook executives like Sheryl Sandberg and Joel Kaplan to the metapolitics of Peter Thiel, tech titans have long adopted an inside/outside playbook for conducting politics by other means.
Updated
Rapper Kanye West is among those banned from Twitter (in his case for posting a series of antisemitic tweets), who could return to the platform under Elon Musk.
If the entrepreneur chooses to reinstate their Twitter accounts, Donald Trump could make a comeback, along with US conspiracy theorist Alex Jones, the right-wing commentator Katie Hopkins and the former White House chief strategist Steve Bannon.
The Daily Telegraph has compiled a list of people who could make a comeback.
Updated
Lunchtime summary
While we are waiting for more news on the Twitter deal, here’s a summary of today’s other news.
European stock markets have drifted lower, while the pound has slipped 0.1% but is still above $1.15.
The US oil giants ExxonMobil and Chevron have announced huge profits, dwarfing Shell’s $9.5bn. Texas-based ExxonMobil’s profits tripled to close to $20bn in the third quarter, nearly matching Apple’s profits, while Chevron was $11.2bn in the black. President Joe Biden blasted Exxon for making “more money than God” in the summer.
Profits at the world’s biggest oil companies have soared to nearly £150bn so far this year as Russia’s war on Ukraine pushed up energy prices, according to estimates from analysts.
The German economy surprised with growth of 0.3% in the July to September quarter, defying fears of a recession. It eked out 0.1% growth in the previous quarter.
Pre-tax profits at NatWest Group remained flat between July and September at £1.1bn, amid a worsening economic outlook and a cost of living squeeze on its customers, as the bank predicted UK house prices would fall by 7% next year.
The UK’s biggest gas storage site has been brought back in time for what could be one of the tightest winters for years for energy suppliers trying to meet demand.
Kanye West says he lost $2bn in a single day this week after losing several major partnerships over his antisemitic comments.
The $44bn Twitter deal is expected to be announced when Wall Street opens at 2.30pm.
Elon Musk explained why he is buying the social media company here:
Dear Twitter Advertisers pic.twitter.com/GMwHmInPAS
— Elon Musk (@elonmusk) October 27, 2022
Musk expected to address Twitter staff today
Elon Musk is expected to speak to Twitter staff later today, as he seals the $44bn takeover of the social media platform.
Leslie Berland, Twitter’s chief marketing officer, sent a memo to employees on Wednesday saying he would visit the company’s headquarters this week, Bloomberg reported.
“Elon is in the SF office this week meeting with folks, walking the halls, and continuing to dive in on the important work you all do,” Berland wrote in the memo. “For everyone else, this is just the beginning of many meetings and conversations with Elon, and you’ll all hear directly from him on Friday.”
Musk has threatened to slash 75% of the workforce which totals about 7,500, and earlier this week Twitter employees sent an open letter to him and the board, according to Time magazine.
“We demand transparent, prompt and thoughtful communication around our working conditions,” the letter read. “We demand to be treated with dignity, and to not be treated as mere pawns in a game played by billionaires.”
Updated
Here’s some analysis of Elon Musk’s acquisition of Twitter by my colleagues Kari Paul and Alex Hern:
Hate speech and misinformation experts are bracing for the return of Donald Trump to the platform, as Elon Musk completes his acquisition of Twitter.
The social media site permanently removed Trump in January 2021, saying the former president’s tweets were “highly likely to encourage and inspire people to replicate the criminal acts that took place at the US Capitol on 6 January 2021”.
However, earlier this year Musk said he would reverse that ban, calling Twitter “left-biased”, and on Thursday he reportedly sacked the executive responsible.
“I do think it was not correct to ban Donald Trump,” the Tesla CEO told a Financial Times conference in May. “I think that was a mistake. It alienated the country and did not result in Donald Trump not having a voice. I think it was a morally bad decision and foolish in the extreme.”
Eliot Higgins, founder and creative director of Bellingcat, the Netherlands-based investigative journalism group, says Twitter’s failure to self-regulate would lead to tighter government rules for all social media firms.
A lack of self-regulation on Twitter will just increase the likelihood of government regulation of all social media, it's as simple as that.
— Eliot Higgins (@EliotHiggins) October 28, 2022
Has there been an explanation to why suddenly follower counts on lots of account dropped overnight? Twitter getting in some bans before the Musk era begins?
— Eliot Higgins (@EliotHiggins) October 28, 2022
In 2007, Bobbie Johnson, former Guardian technology correspondent in London, tried to answer the question many in the UK were asking about the new ‘micro-blogging’ site from the US that was creating huge amounts of buzz: “What is Twitter, and is there any reason I should care?”
In his piece for the paper’s technology supplement (unearthed by Jason Rodrigues of the Guardian’s research & information department), he said of Twitter: “On first glance it is a baffling and seemingly pointless service - but underneath it proves intriguing, useful and addictive for those who live on the move”. You can read the full article here.
Updated
Ironically, the debate about the future of Twitter following its acquisition by the world’s richest man Elon Musk is being conducted on the social media platform – where else?
The American lawyer Tristan Snell tweeted this morning:
People are not leaving Twitter in droves. The drops in follower count are happening in sudden chunks — it’s bot cleanup, not actual people quitting.
— Tristan Snell (@TristanSnell) October 28, 2022
Updated
Top EU official: 'In Europe, the bird will fly by our rules'
Amid fears that Elon Musk’s takeover of Twitter and his stance as a “free speech absolutist” could turn it into a platform for hate speech, Thierry Breton, the commissioner for internal market of the European Union, has weighed in.
Responding to Musk’s tweet, he said:
👋 @elonmusk
— Thierry Breton (@ThierryBreton) October 28, 2022
In Europe, the bird will fly by our 🇪🇺 rules.#DSA https://t.co/95W3qzYsal
He used the the hashtag DSA – a reference to the Digital Services Act, one of two new packages of EU legislation designed to tighten regulation of social media.
Guy Verhofstadt, a former Belgian prime minister (and former lead Brexit negotiator for the European Parliament) who sits in the European Parliament, says:
So one man @elonmusk now owns the biggest debate in the world…
— Guy Verhofstadt (@guyverhofstadt) October 28, 2022
The need for rules and accountability is bigger than ever !
Self-regulation in social media has never worked… even with lesser characters than his pic.twitter.com/h7LYYxVo4W
Updated
The American multi-media journalist and novelist David Leavitt says:
There’s a massive flood of literally hundreds of people each minute using the N word and rampant hate speech happening on Twitter right now post Elon purchase pic.twitter.com/uAqnZJuwjW
— David Leavitt (@David_Leavitt) October 28, 2022
If you type the n word or Holocaust into the search bar then click latest you can view and report racists that have come out of the woodwork after Elon Musk bought twitter in real time.
— David Leavitt (@David_Leavitt) October 28, 2022
But will Twitter do anything about it?
How have Twitter users reacted? The Guardian’s Matthew Cantor in San Francisco has taken a look.
Richard Murphy, economic justice campaigner and professor of accounting practice at Sheffield University, says:
Elon Musk has now bought Twitter. Am I pleased? No. Am I going elsewhere, as yet? No, of course not. Three reasons. 1) Twitter can already be nasty 2) The far-right already use it. 3) The arguments are, right now, bigger than the media delivering them. But let’s see what happens.
— Richard Murphy (@RichardJMurphy) October 28, 2022
And here’s a selection of ‘the best tweets of all time’.
Updated
Former City analyst Louise Cooper, now a senior lecturer in finance at Kingston University Business School, tweets:
Elon Musk overpaid massively for an asset he didn’t even want to buy.
— Louise Cooper CFA (@Louiseaileen70) October 28, 2022
Appalling market timing (started buying Twitter in jan at peak of market, tech stocks down 32% since)
Appalling decision making
$44bn is a lot of money.
Is this a turning point in his so far meteoric rise?
It’s been a terrible week for Big Tech, with results from Google parent Alphabet, Facebook owner Meta, and Amazon spooking investors and triggering a selloff of technology stocks. Meta shares crashed almost 25% on Thursday, while Amazon fell 20% in after-hours trading.
Updated
More reaction from Peter Vidlicka, co-founder of the free PR platform Newspage.
The bird may have been freed but the focus now is on how it behaves, as a songbird or the social media equivalent of a raptor.
Musk’s immediate firing of several of the senior management team is standard operating procedure in many regards but also proof positive that he has new ideas for the direction of one of the world’s leading social media platforms.
All eyes are now on the potential return of Trump. That’s the ultimate litmus test for Twitter moving forward. Will Musk stand by his word and let Trump back onto the platform or cave to the demands of the corporate world?
Advertisers globally will be monitoring events closely and assessing whether the new form Twitter takes remains a viable marketing option.
Elon Musk describes himself as a free speech absolutist, so in the current socio-cultural climate, we can expect fireworks in the months ahead.
To many, Musk’s acquisition of Twitter will be seen as a cultural stand, a reinforcement of free speech and a much-needed authentication of everyday people and their everyday views.
To others, there is a fine line between free speech and hate speech and many are concerned that Twitter under Musk could become an even wilder West than it already is.
Updated
When Musk paid a visit to Twitter’s headquarters on Wednesday, he posted a video of himself in the company’s San Francisco lobby carrying a sink.
“Entering Twitter HQ – let that sink in!” he tweeted on Wednesday.
Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7
— Elon Musk (@elonmusk) October 26, 2022
Musk also changed his Twitter profile to refer to himself as “Chief Twit” and his location as Twitter headquarters.
Updated
Victoria Scholar, head of investment at the trading platform interactive investor, said:
On Thursday, he took over the social media site following an elongated process full of twist and turns in true unpredictable Elon Musk style. Musk has already sacked CEO Parag Agrawal and CFO Ned Segal who he had been in a dispute with over the deal. He also wants to slim down its 7,500 workforce, leaving employees, many of whom are already uncomfortable about the deal, now also feeling unsafe in their seats.
Musk’s leadership is likely to bring about a strategic U-turn for Twitter, switching the company’s focus from tackling trolls, fake news and conspiracy spreading as well as encouraging healthy content sharing, towards Musk’s free speech above everything mentality instead. Donald Trump for example who was banned for violating Twitter rules, could be invited back onto the platform.
Shares in Twitter have outperformed this year, buoyed by the takeover saga, but they may not be tradable on the public markets for much longer if Musk delivers on his desire to take Twitter private. He has long had an issue with the regulatory hurdles and periodic announcements required of a public company and its leadership. As Tesla’s CEO he once tweeted about taking the automaker private without following regulatory protocol, much to the dismay of the SEC.
Updated
Donald Trump, currently banned from Twitter, could make a comeback under the new regime. Twitter banned Trump days after the 2021 Capitol insurrection, citing the “risk of further incitement of violence”.
Elon Musk has claimed he has “acquired Twitter” in a post to the social network reassuring advertisers it will stay a safe place for their brands, amid fears one of his first actions as chief executive will be to restore Donald Trump’s account, writes our UK technology editor Alex Hern.
And here’s an explainer about what Musk might do with Twitter.
Updated
European shares slide, euro falls through parity with dollar
European stock markets have followed in Asia’s footsteps and opened lower. The FTSE 100 index in London has been dragged lower by NatWest, the top faller, down 7.4%.
UK’s FTSE 100 index down 66 points, or 0.9%, at 7,007
Germany’s Dax down 103 points, or 0.8%, at 13,106
France’s CAC down 37 points, or 0.6%, at 6,207
Italy’s FTSE MiB down 279 points, or 1.2%, at 22,312
In Asia, Hong Kong stocks fell to their lowest levels since 2009. The Hang Seng index tumbled more than 4%, dragged down by technology stocks. Japan’s Nikkei dropped 0.9%.
On the currency markets, the pound is trading 0.4% lower versus the dollar, at $1.1513. The euro has fallen through parity with the dollar, slipping 0.16% to $0.9946, a day after the European Central Bank hiked interest rates but appeared fairly dovish.
Updated
Elon Musk wants to become interim CEO at Twitter – report
Elon Musk, the world’s richest man, wants to lead Twitter as chief executive, at least in the interim, Bloomberg is reporting.
Elon Musk plans to assume the role of chief executive at the social media group after completing his $44bn acquisition, on top of leading the electric carmaker Tesla and the spacecraft manufacturer SpaceX.
Musk intends to replace Parag Agrawal, who was fired along with other major executives upon completion of the takeover, Bloomberg said, citing a person familiar with the matter said. The billionaire is expected to remain CEO in the interim but may eventually cede the role in the longer term. Twitter declined to comment.
Twitter’s co-founder Biz Stone thanked the three executives for their contribution to the company. There’s been no word so far from Jack Dorsey, the better-known founder who stepped down as chief executive last year to focus on cryptocurrencies.
Thank you to @paraga, @vijaya, and @nedsegal for the collective contribution to Twitter. Massive talents, all, and beautiful humans each!
— Biz Stone (@biz) October 28, 2022
Introduction: NatWest reports £1.1bn profit; Elon Musk says he has bought Twitter and ‘bird is freed’
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
After months of legal back-and-forth, Elon Musk tweeted “the bird is freed” as he appears to have completed his $44bn takeover of Twitter, taking control of the company and firing several of the top executives including CEO Parag Agrawal.
the bird is freed
— Elon Musk (@elonmusk) October 28, 2022
NatWest has reported flat quarterly profits of £1.1bn this morning as the economic outlook worsened. It is the last of Britain’s ‘big four’ banks to announce results this week: Lloyds, Barclays and HSBC all reported strong profits alongside higher bad loan charges.
The pretax profit for the three months to September was slightly less than the £1.2bn forecast by analysts, and unchanged from last year.
The bank benefited from rising interest rates which pushed up income, but set aside an extra £247m to cover bad debts in light of the worsening economic outlook.
Alison Rose, the chief executive, said:
At a time of increased economic uncertainty, we are acutely aware of the challenges that people, families and businesses are facing up and down the country. Although we are not yet seeing signs of heightened financial distress, we are very conscious of the growing concerns of our customers and we are closely monitoring any changes to their finances or behaviours.
Asian shares slipped and the Japanese yen fell after the Bank of Japan stuck to ultra-low interest rates and maintained its dovish guidance, bucking the tightening trend among central banks around the world. But the BOJ revised its price forecasts higher through 2024 and warned that inflationary pressures were broadening. It said:
The labour market will continue to tighten and gradually strengthen wage pressure.
“An ugly week of Big Tech earnings is also coming to an end, having wiped out hopes of seeing earnings boost gains across the stock markets,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
On Thursday, Facebook owner Meta plunged nearly 25%, dragging down the tech-heavy Nasdaq, which fell 1.9%. Amazon also lost in after hours trading after disappointing numbers and the shares are likely to fall when Wall Street opens later today.
Amazon shares dropped close to 20% in after-hours trading after the company said its all-important holiday shopping season would be smaller than expected. It made a profit of $2.9bn after two quarters of losing money. But it was Amazon’s guidance on the holiday quarter that worried investors.
Apple’s quarterly earnings on Thursday revealed that the company is weathering the ongoing tech downturn better than its competitors, reporting revenue and profit that topped Wall Street targets.
The Agenda
7.45am BST: France inflation preliminary for October (forecast: 5.7%)
8am BST: Spain GDP flash for Q3 (forecast: 0.3%, previous: 1.5%)
8am BST: Spain inflation preliminary for October (forecast: 8%, previous: 8.9%)
9am BST: Germany GDP flash for Q3 (forecast: 0.8%; previous: 1.7%)
10am BST: Eurozone consumer confidence final for October (forecast: -27.6)
10am BST: Italy inflation for October (forecast 9.6%, previous: 8.9%)
1pm BST: Germany inflation preliminary for October (forecast: 10.1%, previous: 10%)
1.30pm BST: US Core PCE Price index for September (forecast: 5.2%, previous: 4.9%)
3pm BST: US Michigan Consumer sentiment final for October (forecast: 59.8)
Updated
