Zinger Key Points
- Musk is concerned that Twitter may have more issues at hand than are currently known.
- His fears came to the fore after Twitter paid a fine to settle a federal probe into its use of user data.
- Musk also agrees that a subscription model will work for Twitter.
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Elon Musk continues to remain skeptical of Twitter, Inc. TWTR integrity. The Tesla CEO also appears to subscribe to idea of Twitter changing its business model to overcome its challenges.
What Happened: Musk agreed with a Twitter user's suggestion that a subscription model would work well for the company. This, according to the user, would prevent the platform from treating users as products.
In response, the Tesla, Inc. TSLA chief executive officer said, "Exactly."
The issue came up for discussion as a Tesla influencer shared a NPR article on Twitter agreeing to pay a $150-million fine after federal regulators found the company improperly collecting and selling users' personal data to advertisers over six years.
The user also stated that Twitter collects personal data such as date of birth under the guise of screening out inappropriate content, while it actually uses it to generate more money by selling targeted ads.
He argued that if Twitter was genuinely concerned about serving up the right kind of content, it could so by asking to confirm whether the user is over 18 years of age.
Related Link: How The Tables Have Turned: Could Elon Musk Be 'Forced' To Buy Twitter?
Musk chimed in by suggesting he is more concerned. "If Twitter was not truthful here, what else is not true? This is very concerning news," he said.
If Twitter was not truthful here, what else is not true? This is very concerning news.
— Elon Musk (@elonmusk) May 26, 2022
Why It's Important: After negotiating a deal to buy Twitter for $54.20 per share or $44 billion, Musk announced later that the deal is on hold, taking exception to the bot user count provided by Twitter.
On Wednesday, Musk said in an amended SEC filing that he is upping his commitment toward the proposed Twitter buy to $33.5 billion and also reiterated his commitment toward the deal. He also suggested that he is working on securing additional financing.
Board Reshuffle: In a separate development, at an annual meeting held Wednesday, Twitter's shareholders voted against the reelection of private equity firm Silver Lake's co-head Egon Durban to the social media platform's board.
It is to be noted the private equity firm partnered with Musk when he unsuccessfully attempted to take Tesla private in 2018.
Twitter co-founder Jack Dorsey stepped down from the board, a move that was anticipated. When Dorsey quit as CEO late last year, the company suggested that he would stay on in the board until his term expires at the 2022 annual shareholder meeting. His decision to not seek re-election signals severing all links with the company he co-founded and puts to rest speculation that Musk may rope him in as the CEO following the completion of the Twitter deal.
TWTR Price Action: Twitter shares closed Wednesday's session 3.91% higher at $37.16 and were trading up 5.45% at $39.09 Thursday, according to Benzinga Pro data.
Related Link: Twitter Founding Team Member: Elon Musk's Free Speech Approach 'Very Naïve And Unserious'
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