Super app or Wild West? The future of Twitter under Elon Musk
Elon Musk is finally buying Twitter, promising – or to some, threatening – sweeping changes for one of the world’s biggest social media platforms.
With a self-proclaimed remit to ensure everyone’s timeline becomes the ultimate home of free speech, and a vague long-term goal to transform it into “X, the everything app”, the billionaire is taking a hands-on approach.
Sky News takes a look at what it might mean for the future of the platform, and whether users should be hopeful or concerned about what is to come.
The first step to ‘the everything app’
Musk has spoken repeatedly about a “super app”, which he has tentatively dubbed “X”.
Whether that is what Twitter becomes, or a larger platform his new purchase forms part of, is uncertain – but it has drawn comparisons with China’s WeChat, which combines familiar features like messaging, a marketplace, and public Twitter-style posts into one place.
“He has that kind of thinking,” Michael Vlismas, author of Musk biography Risking It All, told Sky News.
“While most people would get bogged down with the details and start their plan there, Elon Musk tends to go straight past all of that and start with the big idea and deal with the issues coming down the line.
“In my mind, it would be the first step on another two, three or four-point plan for where it fits into the next thing he wants to do.”
For Musk’s critics, the vagueness of “the everything app” speaks to a man who does not have a real plan.
Jason Goldman, a member of Twitter’s founding team and ex-board member, believes that lack of clear strategy is exactly why he tried to pull out of the deal.
“He hasn’t put forward a serious plan about what he wants to do with the platform,” he told Sky News.
“He wants to defeat the bots, it’s about free speech, it’s all very hand-wavey.”
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Musk wants an ‘inclusive’ Twitter
A ‘Wild West’ for free speech
Musk has described himself as a “free speech absolutist”.
He views Twitter’s content moderation as too heavy-handed and has criticised the decision to ban prominent but controversial individuals like Donald Trump.
Experts have warned that the world’s richest man’s loose stance on moderation could be a route for the service’s “very worst” trolls to thrive, turning Twitter into a “Wild West” where anything goes.
Mr Goldman, who was the White House’s first chief digital officer under former president Barack Obama, said: “Free speech is a tremendously important principle, anyone running an internet platform should start by embracing that principle.
“The issue is that Elon doesn’t really care about that – he wants there to be more voices on the platform that cohere with his particular political views.”
Musk – who has been criticised for recent tweets regarding Ukraine and Taiwan – says Twitter’s free speech approach will be based on the laws of individual countries, which experts warn will empower authoritarian regimes.
“In the UK, we have rights that protect our opinions,” said Amelia Sordell, founder of brand agency Klowt.
“What about the countries whose laws prevent free speech? If Twitter abides by country law, those people will have fewer rights, not more.”
Donald Trump was banned from Twitter following the Capitol riots in January 2021
Potential returns for controversial voices
Mr Trump fell foul of Twitter’s rules when deemed to have used his account to incite the US Capitol riots.
It was a high-profile intervention, matched on other platforms like Facebook, which came after years of social media companies being criticised for not doing enough to crack down on dangerous content.
Musk’s approach to free speech and reports of job cuts at Twitter have driven concerns about moderation moving forward.
“Elon clearly doesn’t value that work,” warned Mr Goldman.
“What that means is that there is going to be a real glut of people at the company who know how those protections are enforced and how they work, and that exposes everyone to more danger.
“And not just from ‘mean tweets’, but leaks of user privacy, the exposure of dissidents in authoritarian countries, things with real-world consequences.”
Since Mr Trump’s ban, he has since launched his own platform, Truth Social, promising a safe space for users to “share your unique opinion”.
What about Kanye West? He made a brief return to Twitter earlier this month to complain about being banned from Instagram for an allegedly antisemitic post.
“Welcome back to Twitter, my friend,” Musk said to West, before the rapper was promptly banned from there too.
West has since bought Parler, which pitches itself as being “dedicated to freedom of expression”.
Sound familiar?
Kanye West and the former president have their own ‘free speech’ social media apps
New ways to pay
Twitter is extremely reliant on advertising – it partly blamed a slowdown in the industry for its poor financial results earlier this summer.
A solution, Musk believes, is to come up with a premium experience that some users will pay for – like a new verification marker.
Mr Goldman believes there is space for more premium features for Twitter’s “power users”, but warns Musk’s moderation stance risks alienating those most likely to pay up.
“The problem is those power users aren’t going to want to be on a platform, nor are advertisers, where discourse is looking more hostile […] and all of these user safety issues become more foregrounded,” he says.
“The real issue that surfaces with subscriptions is access,” adds Aaron Green, director of media and connections at R/GA London.
“Many users may not be able to afford a paid model, risking a loss of its current user base.”
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How Musk could change Twitter
Already it is clear that by buying Twitter, Elon Musk is putting an awful lot on his own plate.
Should his ambitions for Twitter match those he has for his other firms (from humanoid robots to life in space), the potential for change – for better or for worse – is certainly sizeable.
“SpaceX started with the grand idea of Mars and let’s colonise Mars – the impossible idea, but it produced this groundswell of support and interest and enthusiasm around space again,” says Musk biographer Mr Vlismas.
“Mars might never be the realisation, but it was the catalyst to form a very effective SpaceX.
“I think Twitter will be a very different space, but will it be a better place as a platform for humanity in the way Elon Musk wants? I think that’s the social media Mars at the moment.
“But on the way to maybe getting to that, I certainly think he will come up with some novel ideas.”
A trio of property giants has lodged a protest against a radical financial restructuring that will see Cineworld imposing steep rent cuts on its landlords.
Sky News has learnt that British Land, Landsec and Legal & General Investment Management all voted against the cinema operator’s restructuring plan this week.
Cineworld has confirmed plans to close six of its UK multiplexes, but documents circulated to creditors show almost 50 others are in categories requiring landlords to agree to revised rent deals in order to ensure their long-term viability.
Although they carry significant influence in the commercial property sector, the trio’s protest will have no impact on the outcome of the company’s proposals, since its owners are now also among its largest creditors, meaning they can effectively force the deal through.
According to documents sent to creditors during the summer, 33 sites – categorised as Class B – “require a reduction of rent to ERV [Estimated Rental Value] Rent in order to place the sites on a viable long-term footing”.
A further 38 of Cineworld’s cinemas would be unaffected, while another 16 Class C1 and C2 leases require reductions to either turnover rent or zero rent in order to render them financially viable.
The documents added that the company did not have sufficient funding to meet a quarterly rent bill on June 24 of £15.9m.
“The UK group did not have sufficient liquidity to make the June 2024 Rent Payment and required further funding from the US Group to meet this liquidity need.
“Absent this funding, the UK Group would have been insolvent on a cashflow basis.”
Cineworld is being advised by AlixPartners.
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Other cinema operators are now poised to step in to take over some of Cineworld’s sites.
The company trades from more than 100 locations in Britain, including at the Picturehouse chain, and employs thousands of people.
Cineworld grew under the leadership of the Greidinger family into a global giant of the industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years earlier.
Its multibillion-dollar debt mountain led it into crisis, though, and forced the company into Chapter 11 bankruptcy protection in 2022.
It delisted from the London Stock Exchange last August, having seen its share price collapse amid fears for its survival.
Cineworld also operates in central and Eastern Europe, Israel and the US.
A long-running measure of consumer confidence has slumped to levels last seen at the start of the year following warnings of “tough choices” ahead in the looming budget.
GfK’s Consumer Confidence Index fell seven points in September to minus 20, with significant drops in predictions for personal finances and the general economy over the coming year.
The report’s authors suggested it was “not encouraging news” for the new government, which has made growing the economy its top priority.
Money latest: Millions already buying mince pies ahead of Christmas
But within weeks of taking the post of chancellor, Rachel Reeves – followed by prime minister Sir Keir Starmer – moved to warn of a legacy £22bn “black hole” in the public finances and said it would result in a painful budget on 30 October.
Among measures already taken include cuts to winter fuel payments, leaving up to 10 million pensioners up to £300 worse off, and inflation-busting public sector pay settlements.
Tax rises and spending cuts are widely expected in next month’s statement to MPs though The Times reported on Friday that a decision by the Bank of England to slow a programme of loss-making bond sales would leave Ms Reeves £10bn better off than she had anticipated.
It added that she was still expected to push forward with her budget plans anyway as a signal of her commitment to fiscal discipline.
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Chancellor: ‘One budget not enough’
The latest snapshot on the public finances, released by the Office for National Statistics (ONS) on Friday showed net borrowing of £13.7bn during August.
Its chief economist, Grant Fitzner, said: “Borrowing was up by over £3bn last month on 2023’s figure, and was the third highest August borrowing on record.
“Central government tax receipts grew strongly, but this was outweighed by higher expenditure, largely driven by benefits uprating and higher spending on public services due to increased running costs and pay.”
Consumer spending accounts for around 60% of the UK economy.
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Data released separately on Friday showed a 1% rise in retail sales volumes during August in the wake of weakness, mostly blamed on poor weather, over the previous couple of months.
The ONS said that the increase was driven by supermarket sales, as demand for BBQ food and drinks rose due to the arrival of some sunshine over the key holiday month.
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UK economy flatlines again
It also credited discounting by clothing retailers.
The data chimes with the latest updates from big retailers, including Next and B&Q’s owner, which have spoken of weak demand for so-called big ticket items such as home furnishings and kitchens respectively.
GfK’s closely-watched survey showed expectations for the general economy over the next 12 months fell by 12 points to -27, while the forecast for personal finances was down nine points to -3.
Read more:
Winter fuel payments – are you still eligible?
Which tax rises could Labour introduce at the budget?
Commenting on its key measures, including the headline figure, consumer insights director at GfK Neil Bellamy said: “These three measures are key forward-looking indicators so despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new government.”
He added: “Strong consumer confidence matters because it underpins economic growth and is a significant driver of shoppers’ willingness to spend.
“Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the budget decisions on October 30.”
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