Elon Musk should completely overhaul Twitter once the takeover is finished. Analysts predict that the billionaire may transform the social network into an all-in-one application like WeChat. Is Elon Musk’s large-scale adventure destined to fail? Let’s discuss that.
Elon Musk has finally decided to purchase Twitter after several months of back and forth. According to several experts whose opinions were expressed by our ABCNews colleagues, the social network should change drastically under the billionaire‘s control.
“There are big changes that will be on the agenda,” said Bill Mann, an analyst at Motley Fool, a private financial advisory and investment firm.
According to analysts, Elon Musk may want to revamp Twitter by introducing a number of features. The businessman has also recently made sure that the purchase of Twitter will hasten the development of its super application project, X.com.
Twitter: the Western equivalent of WeChat?
WeChat is a popular Chinese app that a billion people use. So it makes sense that Elon Musk would want to create a Western version of the app. WeChat, which is very popular in China, enables you to make payments, communicate with loved ones and order food. And even schedule a doctor’s appointment. Elon Musk also talked extensively about his fascination with WeChat during a meeting with Twitter employees.
According to experts contacted by ABCNews, Elon Musk will soon turn Twitter into a multi-purpose app similar to WeChat. The social network’s user base has been stagnant for years. However, with this tactic, it should be able to draw new users and grow more quickly.
“It’s easy to see why any company would want this,” notes Bill Mann about the super app project.
Elon Musk has already talked about the possibility of incorporating a payment system into Twitter. Cryptocurrencies should be the foundation of this system. For instance, you could use virtual currencies to pay for the Twitter Blue subscription, which enables tweet editing. Bill Mann considered the inclusion of a payment system to be “the holy grail of any application.” The feature has the potential to increase the group’s revenue.
A path full of obstacles
Analysts predict that Twitter’s ambitious transformation will run into a number of obstacles. The American regulator could firstly object to a request that sought to multiply its services. In order to obtain a market monopoly. Additionally, Elon Musk’s imagined Twitter app will face established rivals that are already a part of Internet users’ daily lives.
“There are many competitors that Twitter will have to fight,” said Sinan Aral, professor of management at the Massachusetts Institute of Technology.
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Elon Musk will have to compete with already popular social networks like Facebook, Instagram, or WhatsApp. In order to impose Twitter in the West the way WeChat did in China. Meta has the offer that most closely looks like a Western WeChat thanks to its selection of popular applications.
“It will take years and a lot of challenges to overcome,” said Wedbush analyst Dan Ives, estimating Elon Musk’s chances of success at only 20%.
Experts concur that Elon Musk’s project has some potential, though. The billionaire was able to accomplish his objectives despite opposition from Meta and limitations imposed by authorities.
“Again, there’s a reason he’s the richest person in the world. Its back has been against the wall over and over again, and it has met with buge success regardless, like with Tesla and SpaceX,” adds Dan Ives.
Moderation is Elon Musk’s top priority
Elon Musk should concentrate on making it easier to moderate content on the social network at the same time. The inventor of Tesla has always been open about his desire to tolerate outrageous positions. So long as they don’t violate the law. He contends that the social network must be content to follow the law as it is.
“I want to let people who have relatively extreme opinions to express those opinions within the limits of the law,” Elon Musk summed up in June.
Elon Musk may decide to rethink some decisions made by Twitter executives in light of this. Including the ban of Donald Trump’s account. Sinan Aral thinks that the former president of the United States would immediately be back on Twitter. In light of the views expressed by the founder of Tesla. Donald Trump, however, was against a potential return to Twitter a short while ago.
Dan Ives, for his part, thinks Elon Musk’s libertarian ideology runs the risk of clashing with Twitter’s corporate goals. The platform’s business strategy is, in fact, based on ad revenue. Twitter needs to draw users in order to draw advertisers. By allowing offensive and hateful speech, Twitter risks losing a large portion of its user base, which would reduce revenue.
“Musk talks about ‘freedom of speech,’ but if it becomes problematic on Twitter, it goes against the monetization of the platform,” says Dan Ives.
Twitter business model
In practice, Musk’s changes could have negative effects. The billionaire could lower his goals in this area as a result. Elon Musk has frequently mentioned the possibility of freeing Twitter from advertisers in an effort to ease moderation. The platform’s primary source of income should no longer be advertising, according to Elon. It depends on revenue from paid subscriptions in particular to lessen the rely on advertising.
However, we should watch out for the development of events in the next weeks. To see how Elon Musk will change the Twitter platform. So, keep in touch with us for more news in this regard. We will publish updates as soon as available. For now, we should wait for the full acquisition of the platform by the billionaire. And following that, Elon Musk’s vision will be clearer. He may totally change the business model of the company. As a result, the platform may evolve for the better or the worse. But given the history of success, we expect it to be much better than the current situation. We hope to see a new better platform soon.
