Will Twitter be the subsequent MySpace? | Gen Tech

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Since billionaire Elon Musk’s takeover of Twitter in October, a looming sense of doom has hung over the social media platform and its customers.

From giving his (remaining) workers an ultimatum to launching a paid verification function that largely backfired on him, Musk is sending an already dying social media platform to the grave.

Twitter Blue, the social media platform’s paid verification function/Picture Credit score: Mashable

Earlier than Musk’s acquisition of Twitter, the social media platform incurred internet debt of $596.50 million final 12 months, in accordance with the Wall Avenue Journal, and was struggling to draw new customers and develop income.

The corporate had not made a revenue for eight of the previous 10 years.

Publish-acquisition, whereas it is more durable to find out Twitter’s monetary well being as Musk has taken the social media firm non-public, analysts have put collectively an evaluation of the corporate’s newest regulatory filings and Musks’ public statements to search out that the web debt that Twitter has collected skyrocketed. to the big sum of 13,000 million {dollars}.

As well as, the corporate, which generates greater than 90 % of its income from promoting, is seeing large advertisers like WPP’s Group M and Omnicom flee and cease spending on the social media platform as there’s a rising concern about the way forward for the enterprise. Twitter mannequin.

There isn’t any denying that the social media platform was on its option to its grave, its monetary efficiency itself is proof of this, and Musk merely hastened its demise via his reckless strikes and hasty selections.

Customers are fleeing the social media platform.

Huge advertisers apart, Twitter customers are additionally fleeing the platform.

In line with MIT Know-how Overview, the Bot Sentinel platform, which tracks inauthentic conduct on Twitter, believes that round 877,000 accounts have been disabled and one other 497,000 have been suspended between Musk’s acquisition of Twitter in late October and 1 October. November, greater than double the common. variety of accounts

Celebrities like Gigi Hadid and Shonda Rhimes have additionally pulled out of Twitter, citing that Musk’s takeover has solely created a “cesspool of hate and bigotry,” which is true contemplating Twitter noticed an almost 500 % improve. cent in use of racial slurs inside 12 hours of Musk’s acquisition.

Gigi Hadid's Twitter
Gigi Hadid saying the deactivation of Twitter by way of an Instagram Story / Picture Credit score: [email protected]
shonda rhymes twitter
Shonda Rhimes’ newest tweet on Twitter / Picture Credit score: Vulcan Publish Screenshot

However what’s fascinating is that the customers who left Twitter did not simply depart social media, they turned to various platforms, which have reported large will increase of their consumer bases because the Musk acquisition.

Various Twitter platforms are seeing a surge in customers

In line with Fox Enterprise, a lot of the smaller platforms that noticed a rise in customers share frequent parts, particularly the absence of adverts and algorithms.

One such platform is Hive Social, which has garnered greater than two million customers since Musk took over Twitter. The skyrocketing of latest customers even brought on the platform to crash a few instances.

Hive Social combines ideas from Instagram, Twitter, and MySpace, together with picture and video posts, standing updates, an choice to repost content material, and even permits customers to have a customized music part on their profiles.

the social hive
Hive Social / Picture Credit score: Vulcan Publish Screenshot

Whereas the app remains to be removed from excellent and has its fair proportion of bugs, Hive Social has additionally managed to extend its funding, with over 800 individuals investing over US$300,000 within the app via crowdfunding web site WeFunder.

The extra funding Hive Social has acquired will go towards increasing accessibility and releasing weekly growth updates to the app to accommodate consumer suggestions, in accordance with the app’s chief government officer, Raluca Pop, 24.

Along with Hive Social, the decentralized social media platform Mastodon can also be all the craze amongst former Twitter customers and companies.

Mastodon interface / Picture Credit score: Mastodon

In line with SensorTower, the platform noticed its downloads develop by 657 % within the 12 days after Musk took over Twitter.

Mastodon has been round since 2016 and is powered by a community of impartial servers world wide. The platform is just like Twitter in that each are microblogging platforms: a consumer can submit posts that go to a central supply, which may be “featured” (favored), “boosted” (retweeted), and shared.

Alongside common customers, firms and tech giants resembling Volkswagen AG and Google have additionally established their official Mastodon accounts.

Along with the explosion in downloads from these new platforms, current social media platforms like Tumblr additionally noticed adoption improve by 96% within the US and 77% worldwide.

Tumblr Mastodon
The rise in Mastodon and Tumblr downloads since Musk’s takeover of Twitter/Picture Credit score: SensorTower

With all these new platforms gaining floor, how precisely can Musk’s Twitter survive?

Musk’s MySpace second

twitter elon musk
Picture Credit score: Elon Musk @ Twitter

I can draw parallels between the demise of one of many greatest social networking websites, MySpace and Twitter.

MySpace fell out of favor because the platform fell into the unsuitable palms in opposition to good opponents like Fb. Does it sound acquainted to you?

Twitter already lags behind different social media giants, rating fifteenth by variety of customers, and has been overtaken by new entrants like TikTok. Musk’s hostile administration model solely dug a deeper gap for the platform.

Operating Twitter like an authoritarian regime, Musk halved the social media platform’s workforce of seven,500 in a determined bid to chop Twitter’s prices.

Twitter employees Elon Musk
Twitter earlier than and after the Musk acquisition / Picture Credit score: Lauren Chen

Whereas firing Twitter may assist the corporate save greater than $860 million a 12 months, roughly 15 % of Twitter’s $5.57 billion in prices and bills final 12 months, the transfer may additionally show lethal for the corporate. social networking platform, essentially the most important of the corporate. engineers, builders and entrepreneurs have left Twitter.

The mixture of those components, in addition to the rise of social media platforms that rival Twitter, can solely imply one factor: the platform is headed for its downfall.

Is chapter the one approach out?

Picture Credit score: Excessive Court docket Enforcement Group

On November 10, Musk warned of attainable chapter at a normal assembly with Twitter employees, in accordance with individuals accustomed to the matter. This comes on the heels of an inside memo to workers through which Musk warned them of the “terrifying financial challenges going through the corporate.”

Whereas it is plain that Twitter is going through a barrage of challenges and is probably going headed for a downturn, analysts nonetheless imagine Musk might look to different choices earlier than submitting for chapter, in accordance with the Wall Avenue Journal.

If Musk finally ends up declaring chapter, his $27 billion funding will almost definitely be worn out, as shareholders would be the final to obtain funds in the course of the firm’s restructuring.

Somewhat than lose his funding, Musk should purchase again Twitter’s debt from lenders at a deep low cost to scale back the corporate’s debt burden and curiosity prices, in addition to its valuation, mentioned the previous credit score analyst and founding father of the info supplier Enersection LLC, Jeffrey Davies. Wall Avenue Journal.

This can find yourself being useful to the corporate in the long term.

On prime of that, in accordance with finance professor David Kass, Twitter may additionally exchange a few of its debt with fairness, and if profitable, Twitter can generate optimistic free money stream in two to 3 years.

All of it lies in Musk’s plan of action. If the fitting steps are taken on the proper time, Twitter may be saved.

Featured Picture Credit score: Getty Pictures

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Will Twitter be the next MySpace?

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