Musk takeover: Twitter fears risk of losing advertisers, executives

Twitter has acknowledged for the first time that its core advertising business could be at risk amid the $ 44 billion takeover by Elon Musk, along with losing key staff during the process.

In a new filing with the US Securities and Exchange Commission (SEC), the micro-blogging platform said it is exposed to new risks related to its “business relationships, financial condition, operating results, cash flows and business,” including “advertisers continue their spending on our platform. ”

Musk’s ‘free speech’ call has left Twitter advertisers worried as this could put their brands next to posts filled with hatred and bias.

Twitter said in the new US SEC filing that it continues to generate the “substantial majority of our revenue from advertising” and the loss could harm the business, reports TechCrunch.

If its reputation among advertisers is declined, it may be less competitive, said the company.

“We believe that our ability to compete effectively for advertiser spend depends upon many factors, including‘ our reputation and the strength of our brand relative to our competitors, including advertisers ’perception of the health and safety of our platform,” Twitter explained.

There are also fears of mass exodus at Twitter once Musk takes over, as he has lined up new executives to join the platform, including a new CEO.

Twitter last month reached out to its advertisers, reassuring them that Musk’s position as a ‘free speech absolutist’ and other threats to drastically rejig the platform won’t put the brands in bad light.

According to reports Twitter contacted advertising agencies, including campaigners and car manufacturers, to reassure them that Musk’s plans won’t make the platform an inhospitable place for brands.

Twitter under Parag Agrawal fears that Musk’s ‘free speech’ agenda can hurt its $ 4.5 billion a year advertising business.

Advertisers are having nightmares as free speech can hamper their prospects on the platform as their brand’s name may appear alongside hate speech and abusive or dangerous content without moderation.


na / dpb

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Leave a Comment