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How has Twitter (X) changed since Elon Musk took over? Is the platform on the path to decline?
Twitter, now called X, has lost over half its $44 billion value under Elon Musk’s first year of ownership. Key changes made under Musk’s direction, including mass staff layoffs, content moderation alterations, and a new subscription service have stirred controversy and decreased trust in the platform.
Here’s a look at the last year of Twitter, under Musk’s leadership.
How Musk Changed Twitter
How has Twitter changed? A year after Elon Musk’s controversial $44 billion Twitter takeover, the company now known as “X” has plunged in value to just $19 billion. Musk’s chaotic first year at the helm has eroded its finances and reputation.
Background
In October 2022, billionaire Elon Musk completed his heavily publicized acquisition of Twitter in a $44 billion deal. The controversial founder cited his desire to promote free speech and reduce content moderation as key reasons for purchasing the influential social media platform.
In addition to rebranding Twitter as X and replacing the platform’s iconic bird logo with an X logo, Musk made significant changes that many say have transformed the company and user experience for the worse:
- He laid off more than 80% of X’s 8,000-person staff.
- He launched an $8 per month subscription service to verify accounts.
- He reinstated banned accounts.
- He took a more hands-off approach to misinformation and instituted a “get paid for engagement” policy that incentivizes trolls and extremists to publish misleading clickbait on the platform.
- He altered content moderation policies, allowing posts featuring deceptive photos and images—such as fabricated letters from President Biden and video game content falsely presented as war footage of the Israel-Hamas conflict.
Experts say these changes have amplified harmful content and undermined users’ trust in long-standing indicators of information credibility in their feeds. As a result, X, once a top hub for media, political activists, and news enthusiasts, has lost its position as one of the world’s key sources of real-time information and discussion.
Public Perception and User Engagement
The public response to Musk’s X management has been mixed.
Some conservatives, media personalities, influencers, and users frustrated with what they view as Big Tech censorship have praised Musk for lifting bans and allowing freer discourse.
However, Musk’s polarizing style and course shifts have garnered legal and regulatory scrutiny and provoked anger from civil rights groups. Many in the media have been critical of Musk’s haphazard approach and rapid overhaul of X’s policies. And large numbers of users, unhappy with X’s direction under Musk.
Monetization Strategies and Financial Challenges
Musk brought a $13 billion debt burden to X upon his acquisition, resulting in an annual interest payment of approximately $1.2 billion. Despite cutting costs through mass layoffs, the platform remains unprofitable under Musk’s leadership.
Ad sales, X’s primary revenue source, have declined by almost 60% since Musk’s takeover, primarily due to advertisers’ concerns about Musk’s unpredictability and risks that he’s introduced to the platform.
To generate revenue, Musk plans to move away from advertising and launch two premium subscription tiers. However, to date, the company has convinced less than 1% of its users to subscribe to its $8 monthly premium service, which generates under $120 million annually.
Looking Ahead
With sinking user engagement, fleeing advertisers, and a growing credibility crisis, Musk faces immense challenges rebuilding X into a thriving, sustainable platform. Musk promises to revolutionize X and turn it profitable by transforming it into an “everything app” with features like shopping, banking, video and audio calls, and dating services. However, this vision could take years to achieve given the platform’s current instability.
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