How Musk transformed Twitter from communal town square to right-wing conspiracy hub

Elon Musk's transformation of X, formerly known as Twitter, has shifted the platform from a global hub for democratic discourse into a space increasingly associated with right-wing extremism and conspiracy theories. Following his acquisition of the social media giant in late 2022, Musk implemented sweeping changes that drastically reduced the number of employees, weakened content moderation policies, and allowed previously banned users back onto the platform. These actions have led to a surge in inflammatory and often dangerous content being shared widely, according to multiple analyses and reports. Musk initially proposed acquiring Twitter in early 2022, offering $44 billion for the company. However, he later withdrew his bid in July of that year, citing concerns over the platform's handling of spam and fake accounts. Despite this hesitation, pressure from the company's board and shareholders eventually compelled Musk to proceed with the purchase. His bid significantly undervalued the company compared to its peers, offering a 38 percent premium on the pre-bid stock price. The deal ultimately went through, and Musk took control of the platform in October 2022. Jack Dorsey, Twitter’s co-founder and former CEO, reportedly earned around $1 billion from the sale. Other high-ranking executives, including Parag Agrawal, who succeeded Dorsey, also received substantial financial compensation. Agrawal faced legal challenges after Musk initially refused to honor his severance agreement. Institutional investors, including Vanguard Group, which held a 10.3 percent stake, benefited immensely from the transaction, receiving approximately $4.5 billion in proceeds. Under Musk’s leadership, the workforce at X has shrunk dramatically, by nearly 80 percent, leading to the dismantling of entire departments responsible for monitoring harmful content and verifying user authenticity. Many banned accounts have been reinstated, and controversial or misleading posts are now more likely to be promoted rather than suppressed. During the recent Belfast riots, the platform amplified violent and anti-immigrant rhetoric, with one analysis revealing over 3,900 comments advocating for lynchings and other crimes against immigrants. Musk has positioned these changes as a commitment to free speech, arguing that previous content moderation efforts were overly restrictive. However, this shift has strained relationships with major advertisers, many of whom pulled their support due to concerns about their brands being associated with extremist content or inappropriate material. Ad revenue, which once accounted for about 90 percent of the company’s income, plummeted sharply, contributing to a steep decline in the company’s valuation. At one point, X’s value dropped below $10 billion, far below the original acquisition price. In recent months, some large advertisers, including Disney and Apple, have begun returning to the platform, possibly influenced by Musk’s close ties to the current U.S. administration following Donald Trump’s election victory. This resurgence has helped stabilize the company’s valuation, which reached $44 billion again in a secondary investment round last year. However, questions remain about the accuracy of this valuation, given that X is now integrated into Musk’s broader corporate empire, particularly SpaceX. According to SpaceX’s registration documents filed ahead of its initial public offering earlier this year, X is projected to generate $1.8 billion in advertising revenue in 2025. This figure, though optimistic, pales in comparison to the $4.7 billion in ad revenue Twitter generated during its final four quarters as a publicly traded company, from October 2021 to September 2022. If the industry-wide growth rate of 12 percent annually is applied to those figures, the projected 2025 revenue for X appears significantly lower than historical benchmarks. As the platform continues to evolve under Musk’s influence, the balance between free expression and the spread of harmful content remains a contentious issue. The integration of X into Musk’s larger business interests complicates efforts to assess its true market value and long-term viability. Meanwhile, the platform’s role in shaping public discourse, and the potential consequences of its current trajectory, are subjects of ongoing debate among users, regulators, and analysts alike.