Elon Musk’s $44 billion takeover of Twitter, now rebranded as “X,” has triggered sweeping changes and growing clashes with European regulators.
At a Glance
- Musk acquired Twitter for $44 billion in October 2022.
- The platform was rebranded as “X” with major workforce cuts.
- Content moderation policies were loosened, reinstating banned accounts.
- Advertisers pulled back, raising revenue stability concerns.
- EU scrutiny under the Digital Services Act remains intense.
Musk’s High-Stakes Twitter Takeover
When Elon Musk began quietly buying Twitter shares in early 2022, few anticipated the drama that would follow. By March, he held a 9.2% stake, setting the stage for a high-profile acquisition battle. Despite resistance from Twitter’s board, including a “poison pill” defense, Musk pressed forward, ultimately sealing the deal in October for $44 billion.
The acquisition became one of the largest leveraged buyouts in tech history, marked by public disputes, lawsuits, and uncertainty about Musk’s intentions. His stated goal was to reshape the platform into a bastion of free speech and transparency, a stance that quickly put him at odds with regulators and advertisers alike.
Watch now: Musk’s Twitter Takeover Explained
A Platform Transformed Into “X”
Shortly after assuming control, Musk executed sweeping changes. More than half of Twitter’s workforce was laid off, with engineers, trust and safety teams, and communications staff among the hardest hit. The company was rebranded as “X,” reflecting Musk’s ambition to build an “everything app” capable of integrating social media, payments, and digital services under one umbrella.
Policy changes were equally dramatic. Previously banned accounts were reinstated, subscription services were overhauled, and verification shifted toward a paid model. While Musk framed these moves as democratizing access, they unsettled advertisers who worried about content moderation and brand safety. Revenue from ads, which made up the majority of Twitter’s income, began to fluctuate as companies paused spending.
The EU’s Watchful Eye
As Musk’s overhaul unfolded, European regulators sharpened their focus. The EU’s Digital Services Act (DSA), which came into effect in 2023, requires platforms to control harmful content, ensure algorithm transparency, and safeguard user privacy. “X” quickly drew scrutiny over compliance, particularly given Musk’s rollbacks of moderation staff and policies.
European officials, including Thierry Breton, warned Musk that non-compliance could bring heavy fines or restrictions within the EU market. With the bloc emerging as a global leader in digital regulation, Musk’s experiment with “X” faces ongoing friction between his free speech philosophy and Europe’s regulatory mandates.
Future Prospects and Uncertain Path
The turbulence of Musk’s first year with “X” reflects the scale of his ambitions and the risks involved. Short-term instability from layoffs, advertiser withdrawals, and unclear policy direction continues to weigh on the platform. At the same time, Musk’s broader vision of transforming “X” into a multi-service digital hub remains aspirational, with no clear timeline for execution.
Regulatory and legal pressures are unlikely to ease, particularly in Europe where the DSA sets a high compliance bar. Whether Musk can balance his deregulatory instincts with the obligations of operating a global digital platform will determine not only the future of “X,” but also the broader conversation on governance of social media giants.