Twitter takeover: Future challenges with EU, removing permanent bans begin to show

After completing his $44 billion acquisition of Twitter Inc, Elon Musk has said that he intends to replace Parag Agrawal as CEO of the social media platform and also to reverse the permanent ban on users, according to a report by The Associated Press.

According to multiple reports in US media, Agrawal's dismissal was followed by the exit of Chief Financial Officer Ned Segal, legal and policy executive, Vijaya Gadde, Chief Customer Officer Sarah Personette, and General Counsel Sean Edgett. The former Indian-origin CEO will receive $38.7 million — the highest of all the executives shown the door.

The Tesla and SpaceX owner is expected to remain the CEO of Twitter in the interim period, but may eventually cede the role in the longer term, the report said.

Ahead of his $44 billion Twitter acquisition deal, the tech tycoon had dismissed speculation about why he'd buy the micro-blogging platform, and his thoughts on advertising.

"The reason I acquired Twitter is that it is important to the future of civilisation to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence. There is currently great danger that social media will splinter into far right wing and far left-wing echo chambers that generate more hate and divide our society," he said in a statement on Thursday.

The Tesla founder maintained that that Twitter should be "warm and welcoming to all", and ought to enable users to choose the experience they wanted to have. Further, Musk told advertisers that he wanted the platform to be "the most respected advertising platform in the world".

He also tweeted a symbolic line, "the bird is freed", referring to the blue bird (named Larry T Bird) in Twitter's logo — yet another indication that the deal with the tech giant was truly completed.

Later on, in the first of many challenges that a Musk-led Twitter faces, European regulators reiterated past warnings that, under Musk's leadership, the social platform was to abide by the region's Digital Services Act, which levies hefty fines on companies if they do not control illegal content.

"In Europe, the bird will fly by our EU rules," EU industry chief Thierry Breton tweeted on Friday morning, posting in a self-reply a short video of Breton and Musk after their meeting last May, according to a Reuters report.

In an indication of another of the challenges ahead, Bollywood actress Kangana Ranaut, who was banned from Twitter last year for violating its rules on hateful and abusive conduct, applauded Musk's takeover on Instagram and shared requests from fans to have her account restored.

Musk had also said in May that he would reverse the ban on Donald Trump, who was removed after the attack on the US Capitol. The former US president had said he wouldn't return to the platform, and has instead launched his own social media app, Truth Social.

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According to a CNN report, Musk’s arrival could also lead to the return of Jack Dorsey's influence over the company, in some form. Dorsey had stepped down as the CEO in November, and left its board in May.

Although he has said that he would not formally return to Twitter, he has privately discussed the logistics of Twitter with Musk, offering his advice at times.

Insider Intelligence principal analyst Jasmine Enberg said that Musk has good reason to avoid a massive shake-up of Twitter’s ad business, because Twitter's revenues have taken a beating from the weakening economy, months of uncertainty surrounding Musk's proposed takeover, changing consumer behaviour, and the fact that "there's no other revenue source waiting in the wings".

“Even slightly loosening content moderation on the platform is sure to spook advertisers, many of whom already find Twitter’s brand safety tools to be lacking compared with other social platforms,” Enberg said.

• Americas