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Tag: Twitter

  • Elon Musk says activists want to

    Elon Musk says activists want to

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    New Twitter owner Elon Musk said the company has seen a “massive drop” in revenue, blaming civil rights and other advocacy groups for scaring off advertisers as he moves fast to put his imprint on the social media platform.

    Numerous advertisers have paused their spending on Twitter as the Tesla CEO makes sweeping changes at the company. Twitter employees on Friday started to receive layoff notice amid reports that Musk plans to cut about 3,700 jobs — roughly half of Twitter’s workforce. The cuts include employees responsible for enforcing community standards and safety measures across the platform. 

    Previously, Musk has expressed his desire to make Twitter less reliant on advertising — possibly by charging an $8 monthly fee for verification — as well as to unleash “free speech” on the service and eliminate bots. But Musk tweeted Friday that “nothing has changed with content moderation” and said “we did everything we could to appease the activists,” without specifying the groups he was alluding to.

    “Extremely messed up! They’re trying to destroy free speech in America,” Musk said.

    Human rights activists are magnifying calls for companies to stop pumping their ad dollars into Musk’s pocket, arguing that his policies will fuel hate speech, including abusive and racist language and imagery they say has proliferated on Twitter since completed this takeover on October 28. They are dubbing the effort #StopToxicTwitter. 

    “Within 24 hours of Musk taking ownership, the platform was inundated with hate and disinformation,” the coalition of activist groups said in an open letter to the CEOs of the 20 largest advertisers on the platform. “Without deliberate efforts by Twitter to address this type of abuse and hate, your brands will be actively supporting accelerating extremism.”


    Elon Musk makes policy changes, shakes up Twitter

    04:59

    The group said Twitter’s advertisers “have a moral and civic obligation to take a stand against the degradation of one of the world’s most influential communications platforms.” They’re urging companies to freeze their spending until Musk shows he will enforce measures aimed at preserving the integrity of elections, including investing more in human fact-checkers and moderators.

    Free Press, one of the groups, said there were potentially dangerous real-world implications to allowing hate speech and conspiracy theories to proliferate on social media. It said that activity on Twitter could spawn violence, threaten public health and undermine elections.

    Spike in racial slurs

    In a media call on Friday, members of the activist coalition said Musk’s leadership transition coincided with a more than 1,000% spike in racial slurs on Twitter.

    “We are witnessing the real-time destruction of one of the world’s most powerful communications system,” said Nicole Gill, co-founder of another activist group, Accountable Tech.

    Spending on advertising makes up 90% of Twitter’s revenue, giving advertisers leverage to demand that Musk protect the safety and viability of Twitter, the groups argue. 

    screen-shot-2022-11-04-at-12-51-44-pm.png
    Elon Musk’s Twitter profile on November 4, 2022.

    Screenshot


    Separately, researchers from Montclair State University found that the 12 hours immediately following Musk’s takeover of Twitter saw a much more “hostile” environment on the platform. The team looked at tweets filled with “vulgar and hostile” rhetoric aimed at people based on their race, religion, ethnicity and orientation, such as the “n-word,” “k-word,” and “f-word,” to find out just how bad it got. They found an “immediate, visible, and measurable spike” in those terms.

    The NAACP also said this week it has expressed to Musk its concerns about “the dangerous, life-threatening hate and conspiracies that have proliferated on Twitter” under his watch.

    Companies including Audi, General Mills, GM, Mondelez and Pfizer have already paused their ads on Twitter, and more large advertisers are expected to follow suit. And IPG Mediabrands sent a recommendation to clients on Monday that they pause advertising on Twitter for a week until more clarity emerges about brand safety on the site.

    After a barrage of complaints over Musk’s purchase of Twitter, the billionaire Tesla CEO recently changed his profile on the platform to read “Twitter Complaint Hotline Operator.” He listed his location as “Hell.”

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  • Elon Musk’s Twitter Layoffs Are Brewing Up a Perfect Storm for the Midterms

    Elon Musk’s Twitter Layoffs Are Brewing Up a Perfect Storm for the Midterms

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    We’re now just over one week into Elon Musk’s Twitter reign, and the world’s richest man, who opened his bid to buy the platform by insisting he was not doing so “to make money,” is already taking drastic measures to improve profit margins. The billionaire reportedly plans to cut as much as half of the company’s workforce—meaning as many as 3,750 jobs—with at least some of those firings slated to occur by the end of Friday. He is also integrating Twitter’s “blue check” verification program into the Twitter Blue subscription service, according to The New York Times, which could cause a slew of user and content-moderation issues.

    On pre-Musk Twitter, verification badges were provided to celebrities, journalists, politicians, and other public figures as a way of distinguishing their accounts from those of impersonators. (To prove their identity, verified users were often required to submit a picture of their government-issued ID and other identifying information.) But under the new Twitter Blue system—which is set to launch Monday in the US, Canada, Australia, and New Zealand—anyone will be able to receive a verification badge for a monthly $8 fee, negating the original purpose of verification.

    Needless to say, the product’s November 7 rollout date raises obvious red flags. It will go into effect one day before the midterms, whose results are expected to be challenged by a deluge of right-wing misinformation. “Twitter imploding about 100 hours before what is surely going to be the most widely contested and fraught election in (modern) US history is surely going to matter next week in ways we cannot foresee,” tweeted cybersecurity expert Garrett Graff. The pay-for-check service could conceivably help bad actors spread election lies more effectively, allowing them to impersonate political candidates, high-profile journalists, or election officials.

    Twitter content

    This content can also be viewed on the site it originates from.

    As for the layoffs, the company’s leadership reportedly informed staffers Thursday that the cuts were designed “to place Twitter on a healthy path,” before announcing that the business’s offices would be temporarily closed to employees until the shake-up was over. In the company-wide memo Thursday, Twitter told employees to look out for a Friday email revealing whether they still had a job.

    In turn, Twitter was hit with a class action lawsuit Thursday accusing the company of violating federal and state laws that require at least 60 days of notice before mass layoffs. The plaintiffs ask that Twitter be required to meet the notice minimum and that it be barred from issuing additional separation agreements to staffers targeted in the layoffs without making them aware of the aforementioned laws and the suit. “Plaintiffs are very concerned that Twitter will continue these layoffs without providing the requisite notice,” states the suit, which was filed in the US District Court for the Northern District of California by five current or former employees.

    The company’s internal havoc also stands to impact the midterms, as the layoffs have led to less content oversight. “Twitter was probably THE most responsive platform when I covered misinformation in the 2020 presidential election,” Bloomberg reporter Davey Alba tweeted. “Now? Comms has gone dark.… To say I’m worried for next week’s election doesn’t even begin to cover it.” On Friday, NBC tech and extremism reporter Ben Collins echoed the same worries and shared election-related concerns he had heard from current and former Twitter employees. “Using Twitter as a trustworthy source of information on Tuesday is going to be a nightmare,” said Collins, who noted how staffers have warned that Musk has “cut the moderation staff so severely that there’s no way they’re gonna catch up in time to these lies.”

    Musk, for his part, has defended his vision for the platform, spending the past 24 hours sympathizing with aggrieved conservatives on Twitter and painting his critics as anti-free speech. “Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists,” he tweeted Friday. “Extremely messed up! They’re trying to destroy free speech in America.”

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    Caleb Ecarma

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  • Here’s How Social Media Giants—Including Twitter And Meta—Are Bracing For Midterm Misinformation

    Here’s How Social Media Giants—Including Twitter And Meta—Are Bracing For Midterm Misinformation

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    Topline

    All major social media platforms have outlined plans to tackle misinformation around the midterm election and its immediate aftermath, but questions will remain about their effectiveness and the ability of these platforms to adequately implement these measures after struggling to do so during the 2020 elections.

    Key Facts

    Meta, which owns Facebook and Instagram, has temporarily suspended all “political, electoral and social issue” ads from its platforms like it did during the 2020 election and says it will reject all ads that discourage people from voting or question the legitimacy of the elections— will also take down posts that promote voter suppression, including misinformation about polling dates, locations, timings and voter eligibility.

    TikTok says it has been labeling all content around the midterms with links to its “Election Center” page which the company says will offer users “authoritative information” about the polls.

    The platform will take down any content pushing election misinformation, harassment of poll workers, hateful behavior, and violent extremism and any content which is in the process of being fact checked by its partners will not be recommended on user’s ‘For You’ feed.

    Twitter says it plans to get ahead of misinformation on the platform using “prebunks” which are prompts that appear on a user’s timeline that “proactively address topics that may be the subject of misinformation.”

    Like it did in 2020, Twitter says it will continue to use labels on tweets sharing election-related misinformation, claiming that these help both direct people toward debunking content while reducing engagement levels for these tweets.

    Both YouTube and its parent Google will rely on the Associated Press to display “authoritative election results” on their platforms, while YouTube will also elevate content from “authoritative news sources” like “CNN and Fox News,” limit the spread of “harmful election misinformation” and add information panels on top of all election related search results.

    What To Watch For

    All eyes will be on Twitter after it was recently acquired by billionaire and self-styled “free speech absolutist” Elon Musk. While Twitter continues to have policies in place to deal with election misinformation, there have been concerns about its ability to enforce these policies as it is set to lose nearly half of its workforce in a mass layoff on Friday. Earlier this week, Twitter’s Head of Safety and Integrity Yoel Roth acknowledged that the platform had seen a brief surge in hateful content after being acquired by Musk, but attributed most of these issues to a small number of troll accounts. Earlier this week, Bloomberg reported that most members of Twitter’s Trust and Safety team have been restricted from accessing the platform’s internal moderation tools. In addition to this, Twitter’s new owner, Elon Musk, faced criticism over the weekend after he tweeted out an unfounded conspiracy theory about the attack on House Speaker Nancy Pelosi’s husband. Musk, who has engaged in a war of words with progressive Rep. Alexandria Ocasio-Cortez (D-N.Y.), responded to a clip of the congresswoman accusing Musk of restricting her Twitter account by writing “What can I say? It was a naked abuse of power.”

    Key Background

    All the policies outlined by the major social media platforms largely seem to build upon measures that were in place for the 2020 elections. While most of these policies were enacted as outlined, there were several questions about the effectiveness of the use of labels and fact checks by “authoritative sources.” Immediately after the 2020 election, all platforms had to scramble to deal with former President Donald Trump’s refusal to concede and various conspiracy theories shared by him and his supporters about the legitimacy of the election process. The proliferation of these false claims, led by the former president, came to a head when Trump supporters stormed the Capitol building on January 6, resulting in the former president being banned from all major social media platforms.

    Tangent

    It is unclear what kind of “authoritative news” content YouTube plans to elevate but the choice of Fox News as one of the sources may raise some eyebrows as the network faces a $1.6 billion lawsuit from voting machine maker Dominion which has accused it of amplifying false claims about the voting machines being used to rig the 2020 elections.

    Further Reading

    Twitter Safety Head Admits ‘Surge In Hateful Conduct’ As Firm Reportedly Limits Access To Moderation Tools (Forbes)

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    Siladitya Ray, Forbes Staff

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  • Elon Musk said Twitter has seen a ‘massive drop in revenue’ as more brands pause ads | CNN Business

    Elon Musk said Twitter has seen a ‘massive drop in revenue’ as more brands pause ads | CNN Business

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    CNN
     — 

    Elon Musk said Friday that Twitter has seen a “massive drop in revenue,” as a growing number of advertisers pause spending on the platform in the wake of his $44 billion acquisition.

    “Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists,” he said in a tweet. “Extremely messed up! They’re trying to destroy free speech in America.”

    The remarks came after General Mills and the Volkswagen Group confirmed that they are pausing advertising on Twitter in the wake of Musk’s acquisition of the social media company, in the clearest sign yet of growing advertiser uncertainty about the future of the platform under new ownership.

    “We have paused advertising on Twitter,” Kelsey Roemhildt, a spokesperson for General Mills, told CNN in a statement, making it the first company that doesn’t compete with Musk’s Tesla to confirm such a move. “As always, we will continue to monitor this new direction and evaluate our marketing spend,” the spokesperson said.

    In a separate statement, Volkswagen Group, which owns Audi, Porsche and Bentley, confirmed it had recommended its brands “pause their paid activities on the platform until further notice.”

    The Wall Street Journal, which was first to report the moves, also said Pfizer and Mondalez are pausing ads on Twitter. The companies did not immediately respond to a request for comment.

    The companies join General Motors, which had previously said it would pause paying for advertising on Twitter while it evaluates the platform’s “new direction.” Toyota, another Tesla competitor, previously told CNN that it is “in discussions with key stakeholders and monitoring the situation” on Twitter.

    Ad buying giant Interpublic Group, which works with consumer brands such as Unilever and Coca Cola, earlier this week also recommended its clients pause advertising on the platform.

    The impact is apparently already being felt at Twitter, as Musk tweeted that “Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers” Thursday after many of the advertising announcements were made.

    After months of uncertainty about Musk’s pending acquisition, advertisers are now confronting questions around how Musk will change the platform, which is already an also-ran in the digital ad space despite its outsized political influence. Musk, known as both an innovative entrepreneur and an erratic figure, has promised to rethink Twitter’s content moderation policies and undo permanent bans of controversial figures, including former President Donald Trump.

    That creates a challenge for brands, which are sensitive to the types of content their ads run against, an issue made more complicated by social media. Most marketers bristle at the thought of having their ads run alongside toxic content such as hate speech, pornography or misinformation.

    The pauses also come days ahead of the US midterm elections, as many civil society leaders worry that misinformation and other harmful content could spread on the platform and create disruption.

    Musk has said he’s not a fan of advertising and is currently working to boost Twitter’s subscription revenue to boost its bottom line and be less dependent on ad sales, which account for 90% of Twitter’s overall revenue. But this shift won’t happen overnight, if it happens at all. Musk said he plans to launch an $8 per month subscription plan that will provide users with a verification mark, as well as several other perks, but the plans has faced sharp backlash.

    In the meantime, Musk is working to stave off a possible advertiser exodus. Musk’s team spent Monday “meeting with the marketing and advertising community” in New York, according to Jason Calacanis, a member of Musk’s inner circle.

    Musk also met earlier this week with a group of leaders of civil society organizations, including the Anti-Defamation League, Free Press and the NAACP, to address concerns about a rise in hate on the platform. Representatives who attended the meeting told CNN they were encouraged by Musk’s willingness to talk and his initial commitments not to change the company’s content policies ahead of the midterms, but called on him to take further steps to protect the platform.

    Shortly before news broke last week that his $44 billion Twitter acquisition was completed, Musk wrote an open letter attempting to reassure advertisers that he does not want the social network to become a “free-for-all hellscape.”

    “Fundamentally, Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise,” he wrote. “Let us build something extraordinary together.”

    – CNN’s Jon Passantino and Peter Valdes-Dapena contributed to this report.

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  • Twitter layoffs begin a week after Elon Musk’s $44 billion takeover

    Twitter layoffs begin a week after Elon Musk’s $44 billion takeover

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    Twitter employees on Friday braced for widespread layoffs as part of new owner Elon Musk’s broad overhaul of the social platform.

    In a letter to employees obtained by multiple media outlets, the company said that workers would find out by 9 a.m. Pacific Standard Time if they had been laid off. The email did not say how many people would lose their jobs.

    “Everyone will receive an individual email with the subject line: Your Role at Twitter,” read the notice. Workers who receive the note at their Twitter company email can expect to keep their jobs, while those who receive it at their personal emails would be laid off, the notice read.

    The email to staff said job reductions were “necessary to ensure the company’s success moving forward.”

    Some employees tweeted early Friday that they had already lost access to their work accounts. They and others tweeted messages of support using the hashtag #OneTeam. 

    “Looks like I’m unemployed y’all. Just got remotely logged out of my work laptop and removed from Slack,” Simon Balmain, a former community manager based in the U.K., tweeted. “So sad it had to end this way.”

    According to reports from Reuters and other media outlets, Musk is looking to lay off as much as half of Twitter’s roughly 7,500 employees as he seeks to make the social media platform profitable. 

    Already, the billionaire Tesla CEO has fired top executives, including CEO Parag Agrawal, on his first day as Twitter’s owner. He also removed the company’s board of directors and installed himself as the sole board member. Among his plans include charging $8 a month for users to display the blue “verified” checkmark indicating their online identity is who they are in real life and increasing subscription revenue so Twitter relies less on advertising. 


    How would Elon Musk regulate Twitter’s content?

    08:19

    At the same time, major advertisers have paused their Twitter ads as they wait to see how the company develops under Musk. He has called himself a “free speech absolutist” and pledged to reverse bans on prominent figures, including former President Donald Trump, as Twitter’s head.

    Many worry that the overhaul will lead to an explosion of hate speech and spam on the platform.  Within just 12 hours of Musk’s purchase being finalized Friday, references to a specific racist epithet used to demean Black people shot up by 500%, according to an analysis conducted by the Network Contagion Research Institute, a Princeton, New Jersey-based firm that tracks disinformation.

    No public notice

    As of Thursday, Musk and Twitter had given no public notice of the coming layoffs. That’s even though the Worker Adjustment and Retraining Notification statute requires employers with at least 100 workers to disclose layoffs involving 500 or more employees, regardless of whether a company is publicly traded or privately held.

    Barry C. White, a spokesperson for California’s Employment Development Department, told the Associated Press Thursday the agency has not received any such notifications from Twitter.

    A class action lawsuit was filed Thursday in federal court in San Francisco on behalf of one employee who was laid off and three others who were locked out of their work accounts. It alleges that Twitter intends to lay off more employees and has violated the law by not providing the required notice.


    Elon Musk’s leadership style as head of Twitter

    09:04

    The layoffs come at a tough time for social media companies, as advertisers are scaling back and newcomers — mainly TikTok — are threatening the older class of social media platforms like Twitter and Facebook.

    Meta Platforms Inc., Facebook’s parent company, recently posted its second quarterly revenue decline in history and its shares are trading at their lowest levels since 2015. Meta’s disappointing results followed weak earnings reports from Google parent Alphabet and even Microsoft.

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  • Amber Heard appears to have left Twitter after Elon Musk takeover | CNN

    Amber Heard appears to have left Twitter after Elon Musk takeover | CNN

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    CNN
     — 

    More than a few people have said they were leaving Twitter after Elon Musk bought the company, but his former girlfriend, Amber Heard, appears to have actually split with the social media platform.

    Her handle, @RealAmberHeard, is no longer listed.

    She announced via her verified Facebook page on April 10, 2017, “I am now live on Twitter. You can follow my tweets here – @realamberheard.”

    Heard and Musk went public with their relationship that same month, reconciled after a brief split, and then reportedly broke up for good in April 2018.

    Over the summer, the actress tweeted about losing her defamation case against her ex-husband Johnny Depp.

    “The disappointment I feel today is beyond words. I’m heartbroken that the mountain of evidence still was not enough to stand up to the disproportionate power, influence and sway of my ex-husband,” Heard tweeted in June.

    She still has accounts on Facebook and Instagram, but has not shared publicly as to why she left Twitter.

    CNN has reached out to Heard’s representative for comment.

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  • Employees at Elon Musk’s Twitter brace for layoffs | Long Island Business News

    Employees at Elon Musk’s Twitter brace for layoffs | Long Island Business News

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    Employees braced for widespread layoffs at Twitter Friday as new owner Elon Musk overhauls the social platform.

    In a letter to employees obtained by multiple media outlets, the company said employees would find out by 9 a.m. Pacific Standard Time if they had been laid off. The email did not say how many people would lose their jobs.

    Some employees tweeted early Friday that they had already lost access to their work accounts. The email to staff said job reductions were “necessary to ensure the company’s success moving forward.”

    Twitter’s roughly 7,500 employees have been expecting layoffs since Musk took the helm of the company. Already, the billionaire Tesla CEO has fired top executives, including CEO Parag Agrawal, on his first day as Twitter’s owner.

    He also removed the company’s board of directors and installed himself as the sole board member. On Thursday night, many Twitter employees took to Twitter to express support for each other — often simply tweeting blue heart emojis to signify Twitter’s blue bird logo — and salute emojis in replies to each other.

    As of Thursday, Musk and Twitter had given no public notice of the coming layoffs. That’s even though the Worker Adjustment and Retraining Notification statute requires employers with at least 100 workers to disclose layoffs involving 500 or more employees, regardless of whether a company is publicly traded or privately held.

    Barry C. White, a spokesperson for California’s Employment Development Department, said Thursday the agency has not received any such notifications from Twitter.

    A class action lawsuit was filed Thursday in federal court in San Francisco on behalf of one employee who was laid off and three others who were locked out of their work accounts. It alleges that Twitter intends to lay off more employees and has violated the law by not providing the required notice.

    The layoffs come at a tough time for social media companies, as advertisers are scaling back and newcomers — mainly TikTok — are threatening the older class of social media platforms like Twitter and Facebook.

    Meta Platforms Inc., Facebook’s parent company, recently posted its second quarterly revenue decline in history and its shares are trading at their lowest levels since 2015. Meta’s disappointing results followed weak earnings reports from Google parent Alphabet and even Microsoft.

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    The Associated Press

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  • Growing number of companies are freezing their Twitter ads after Elon Musk takeover

    Growing number of companies are freezing their Twitter ads after Elon Musk takeover

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    General Mills and Audi are the latest big advertisers to pause ads on Twitter as questions swirl about how the social media platform will operate under new owner Elon Musk.

    Spokesperson Kelsey Roemhildt on Thursday confirmed the move by the Minneapolis-based maker of food brands such as Cheerios and Annie’s macaroni and cheese. “As always, we will continue to monitor this new direction and evaluate our marketing spend,” she said.

    Audi spokesperson Whaewon Choi-Wiles said the German automaker is pausing ads and “will continue to evaluate the situation.”

    Advertisers are concerned about whether content moderation will remain as stringent under Musk — a self-described “free speech absolutist” — as it has been, and whether staying on Twitter might tarnish their brands.

    Shortly before taking over the San Francisco company last week, Musk issued a vow to advertisers that he would not allow Twitter to become a “free-for-all hellscape,” an indication there would still be consequences for violators of its rules against harassment, violence, or election and COVID-related misinformation.


    Elon Musk’s leadership style as head of Twitter

    09:04

    But since then some users have posted racial slurs and recirculated long-debunked conspiracy theories in an apparent attempt to see if the site’s policies were still being enforced. 

    Spike in hate speech

    Researchers from Montclair State University found that the 12 hours immediately following Musk’s takeover of Twitter saw a much more “hostile” environment on platform. The team looked at tweets filled with “vulgar and hostile” rhetoric aimed at people based on their race, religion, ethnicity and orientation, such as the “n-word,” “k-word,” and “f-word,” to find out just how bad it got. They found an “immediate, visible, and measurable spike” in those terms.

    Researchers also said there was an increase in negative sentiment, with more than 67% of the tweets sent after Musk’s takeover having a negative tone.

    The NAACP said this week it has expressed to Musk its concerns about “the dangerous, life-threatening hate and conspiracies that have proliferated on Twitter” under his watch.

    Last week, General Motors announced that it had temporarily paused its Twitter advertising while it works to “understand the direction of the platform.” GM described the pause as a normal step it takes when a media platform undergoes significant change.

    IPG Mediabrands sent a recommendation to clients on Monday that they pause advertising on Twitter for a week until more clarity emerges about brand safety on the site, according a person who had seen the recommendation.

    Other big Twitter advertisers like Warner Discovery, Coca-Cola and Nestle did not respond to requests for comment about their advertising plans.

    Some could evaluate their plans after Twitter’s new “content moderation council” meets. Musk has said he will not reinstate any accounts or make major content decisions before it is convened. No date has been announced for that meeting.


    Elon Musk fires top executives after Twitter takeover

    02:21

    About 90% of Twitter’s revenue comes from advertisers but it’s far from the biggest platform that advertisers turn to for digital marketing. Google, Amazon and Meta account for about 75% of digital ads, with all other platforms combined making up the other 25%.

    Twitter will account for 0.9% of worldwide digital ad spending in 2022, according to projections by Insider Intelligence. Meta will account for 21.4% in 2022.

    Twitter has lost most of its top executives in the past week, including the one in charge of advertising sales. Sarah Personette, the site’s chief customer officer, tweeted earlier this week that she resigned on Friday from Twitter and her work access was officially cut off Monday night. Days earlier, she said she had a “great discussion” with Musk and expressed optimism about the company’s future. 

    In announcing her resignation Tuesday, she said she still believes Twitter’s new administration understands the importance of upholding the “brand safety” standards she sought to champion.

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  • Interest rates will keep rising. How high will they go? | CNN Business

    Interest rates will keep rising. How high will they go? | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN Business
     — 

    What will the Federal Reserve do at its meeting in December? Analysts can speculate all they want, but Fed officials say they will be using hard economic data to make their next decision.

    That means key housing, labor, and inflation reports will likely have outsized effects on the market as investors speculate about what they might mean for the future of interest rates.

    What’s happening: No one can move markets like Federal Reserve Chair Jerome Powell — with just a few words on Wednesday he crushed investors’ hopes of an interest rate pivot and sent stocks plunging. “We have a ways to go,” said Powell of the Fed’s current hiking regime meant to fight persistent inflation. “It’s very premature, in my view, to think about or be talking about pausing.”

    But Powell did add an important caveat. The Fed could start to slow the pace of those painful hikes as soon as December. “Our decisions will depend on the totality of incoming data and their implications for the outlook for economic activity and inflation,” Powell said on Wednesday.

    So what will the Fed be looking at between today and its next policy decision on December 14?

    The labor market: The Fed’s biggest worry is the super-tight US labor market, and Friday’s jobs report isn’t likely to soothe any nerves.

    The government report is expected to show the economy added another 200,000 positions in October — down from last month, but still a very solid number as demand for employment continues to outpace the supply of labor.

    That means more inflation. Businesses have to pay higher wages to attract employees and are able to charge more for their goods and services. The Fed will be looking closely at hourly wage growth in the report. In September, wages rose by 5% from a year ago.

    There is a possible upside: Another jobs report in December is expected ahead of the Fed meeting. If both reports show a downward trajectory in employment, that could be enough to placate Fed officials, even if the unemployment rate remains historically low.

    Inflation data: Expect new data from two major indexes that measure the pace of inflation ahead of the next Federal Reserve meeting.

    The Consumer Price Index (CPI) for October, which tracks changes in the prices of a fixed set of goods and services, is out on November 10.

    Core CPI prices, which exclude oil and food, rose 0.6% in September month-over-month, matching August’s pace and coming in well above expectations of a 0.4% increase, not a great sign for the Fed. And analysts expect to see another large 0.5% increase in October.

    The Fed will also get to see October data from its favored measure of inflation, Personal Consumption Expenditures (PCE), on December 1.

    PCE reflects changes in the prices of goods and services purchased by consumers in the United States. The Fed believes the measure is more accurate than CPI because it accounts for a wider range of purchases from a broader range of buyers.

    Core PCE climbed by 5.1% on an annual basis in September, higher than the August rate of 4.9% but below the consensus estimate of 5.2%, per Refinitiv.

    Housing: The housing market has been deeply impacted by the Fed’s efforts to fight inflation, and is one of the first areas of the economy to show signs of cooling.

    The 30-year fixed-rate mortgage averaged 6.95% last week, up from 3.09% just a year ago, and elevated borrowing costs are leading to a decline in demand.

    “The housing market was very overheated for the couple of years after the pandemic as demand increased and rates were low,” said Powell on Wednesday. “We do understand that that’s really where a very big effect of our policies is.”

    October’s new and existing home sales numbers, due on November 18 and 23, will show the continued impact of that policy ahead of the next meeting.

    The US economy is still standing strong in the face of rising interest rates, but things are softening much more quickly across the pond.

    The United Kingdom will face hard economic times and elevated interest rates well into next year, officials warned this week.

    The Bank of England raised interest rates by three-quarters of a percentage point on Thursday, the biggest hike in 33 years, as it attempts to fight soaring inflation.

    But the bank also issued a stark warning. It said that economic output is already contracting and that it expects a recession to continue through the first half of 2024 “as high energy prices and materially tighter financial conditions weigh on spending.”

    A two-year recession would be longer than the one that followed the 2008 global financial crisis, though the Bank of England said that any declines in GDP heading into 2024 would likely be relatively small.

    The central bank also doesn’t think inflation will start to fall back until next year. That will require more interest rate hikes in the coming months, warned policymakers.

    Elon Musk has been busy over at Twitter HQ. Aside from tweeting and deleting a conspiracy theory, he’s talked about implementing some big changes at his $44 billion acquisition. Here’s what’s happened so far:

    Layoffs begin: Elon Musk began laying off Twitter employees on Friday morning, according to a memo sent to staff. The email sent Thursday evening notified employees that they will receive a notice by 12 p.m. ET Friday that informs them of their employment status.

    The email added that “to help ensure the safety” of employees and Twitter’s systems, the company’s offices “will be temporarily closed and all badge access will be suspended.”

    Twitter had around 7,500 employees prior to Musk’s takeover.

    Several Twitter employees have already filed a class action lawsuit claiming that the layoffs violate the federal Worker Adjustment and Retraining Notification Act.

    The WARN Act requires any company with over 100 employees to give 60 days’ written notice if it intends to cut 50 jobs or more at a “single site of employment.”

    Consolidating strength: In less than a week since Musk acquired Twitter, the company’s C-suite appears to have almost entirely cleared out, through a mix of firings and resignations.

    Twitter’s board of directors was also dissolved last week, according to a securities filing.

    The company filing states that all previous members of Twitter’s board, including recently ousted CEO Parag Agrawal and chairman Bret Taylor, are no longer directors “in accordance with the terms of the merger agreement.” That makes Musk, according to the filing, “the sole director of Twitter.”

    Cashing blue checks’ checks: Musk on Tuesday said he planned to charge $8 a month for Twitter’s subscription service, called “Twitter Blue,” with the promise to let anyone pay to receive a coveted blue check mark to verify their account. That’s a steep haircut from his original plan to charge users $19.99 a month to get or keep a verified account.

    In a tweet, the world’s richest man used an expletive to describe his assessment of “Twitter’s current lords & peasants system for who has or doesn’t have a blue checkmark.” He added: “Power to the people! Blue for $8/month.”

    Advertisers hit pause: Elon Musk wrote an open letter to advertisers just hours before cementing his acquisition of Twitter, explaining that he didn’t want the platform to become a “free-for-all hellscape.” But that attempt at reassuring the advertising industry, which makes up the vast majority of Twitter’s business, doesn’t appear to be working.

    General Mills

    (GIS)
    , Mondelez International

    (MDLZ)
    , Pfizer

    (PFE)
    and Audi

    (AUDVF)
    have reportedly joined a growing list of companies hitting pause on their Twitter advertising in the wake of Musk’s acquisition.

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  • Elon Musk’s Twitter informs staff layoffs are set to begin | CNN Business

    Elon Musk’s Twitter informs staff layoffs are set to begin | CNN Business

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    CNN Business
     — 

    Elon Musk will begin laying off Twitter employees on Friday morning, according to a memo sent to staff. The email sent Thursday evening notified employees that they will receive a notice by 12 pm ET Friday that informs them of their employment status.

    “If your employment is not impacted, you will receive a notification via your Twitter email,” a copy of the email obtained by CNN said. “If your employment is impacted, you will receive a notification with next steps via your personal email.”

    The email added that “to help ensure the safety” of employees and Twitter’s systems, the company’s offices “will be temporarily closed and all badge access will be suspended.”

    The email concluded acknowledging that it will be “an incredibly challenging experience to go through” for the workforce.

    The memo comes after news reports that Musk had planned to lay off up to half of the company’s staff after acquiring it last week for $44 billion.

    Twitter had around 7,500 employees prior to Musk’s takeover.

    Musk started his tenure at Twitter by firing CEO Parag Agrawal and two other executives, according to two people familiar with the decision.

    And in less than a week since Musk acquired the company, its C-suite appears to have almost entirely cleared out, through a mix of firings and resignations. Musk has also dissolved Twitter’s former board of directors.

    – Clare Duffy contributed to this report

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  • Alexandria Ocasio-Cortez claims her Twitter account has experienced difficulties following feud with Elon Musk

    Alexandria Ocasio-Cortez claims her Twitter account has experienced difficulties following feud with Elon Musk

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    Rep. Alexandria Ocasio-Cortez claimed Wednesday that her Twitter account was experiencing technical issues following an online disagreement with Twitter’s new owner and CEO, Elon Musk.

    The Democratic New York representative alleged Wednesday that her Twitter “mentions/notifications conveniently aren’t working.” She followed up with a second tweet Thursday that claimed that the “Verified” tab of her account, which should be populated with tweets from verified creators, appeared empty. 

    “This is what my app has looked like ever since my tweet upset you yesterday,” she wrote. “What’s good? Doesn’t seem very free speechy to me.”

    The back-and-forth began Tuesday, when Ocasio-Cortez tweeted her distaste that a “billionaire [is] earnestly trying to sell people on the idea that ‘free speech’ is actually a $8/mo subscription plan,” referencing a Musk announcement that the platform was considering charging users for verification status

    “Power to the people! Blue for $8/month,” Musk wrote, referring to Twitter’s current blue check mark system as a “lord & peasants system.”

    Musk argued that charging users for their badge would allow the platform a revenue stream with which to reward content creators, and that those shelling out extra money would have access to additional in-app benefits, such as priority in replies, mentions, searches, extended video and audio posting privileges and reduced advertisements. 

    Musk replied to Ocasio-Cortez’s tweet, writing, “Your feedback is appreciated, now pay $8.” 

    Shortly after the exchange, Musk tweeted a photo of a sweatshirt available on Ocasio-Cortez’s website, circling the $58 price tag. Ocasio-Cortez quote-tweeted the dig, writing, “My workers are union, make a living wage, have full healthcare, and aren’t subject to racist treatment in their workplaces,” referencing lawsuits which have been filed against Tesla by Black employees of the company. 

    “Items are made in USA. Team AOC honors and respects working people. You should try it sometime instead of union-busting,” she added. 

    In 2021, the National Labor Relations Board ordered Musk to delete an anti-union tweet, and ordered Tesla to rehire a union supporter who had been fired.

    In her original claim of app-specific difficulties Wednesday, Ocasio-Cortez tweeted, “Just a reminder that money will never [buy] your way out of insecurity, folks.”

    Though Musk did not respond directly, his tongue-in-cheek Twitter bio currently reads “Twitter Complaint Hotline Operator.”

    CBS News has reached out to Twitter for comment.

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  • Report: Elon Musk set to fire roughly half of Twitter’s workers

    Report: Elon Musk set to fire roughly half of Twitter’s workers

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    Elon Musk is set to cut about 3,700 jobs at Twitter, representing about half of the company’s staff, according to Bloomberg News. 

    The push to slash costs comes about a week after the Tesla CEO took control of the social media company following completion of his $44 billion purchase of Twitter. Musk immediately fired Twitter CEO Parag Agrawal, the company’s chief financial officer and top lawyer, while other members of the company’s leadership team have also left.

    Twitter didn’t immediately respond to a request for comment about the reported job cuts.

    Musk overpaid for Twitter by about $20 billion, according to Wedbush analyst Dan Ives, who told CBS MoneyWatch that he believed that would force the billionaire to cut between 30% to 50% of the company’s employees. In its most recent quarter, Twitter lost $270 million and its revenue slipped as advertising growth slowed. 


    Elon Musk’s leadership style as head of Twitter

    09:04

    “By overpaying for Twitter by roughly $20 billion, there is a lot of wood to chop for Musk to try to make back his money for himself as well as his investors,” Ives said. 

    Twitter will announce the job cuts to employees on Friday, Bloomberg reported. The news service also said Musk plans to reverse the company’s current policy of allowing them to work from the location of their choice, noting that most employees will be asked to report to offices.

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  • Elon Musk disbands Twitter’s board, cementing control over company | CNN Business

    Elon Musk disbands Twitter’s board, cementing control over company | CNN Business

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    CNN
     — 

    Twitter’s board of directors was dissolved on Thursday following Elon Musk’s takeover of the company, according to a securities filing on Monday.

    The company filing states that all previous members of Twitter’s board, including recently ousted CEO Parag Agrawal and chairman Bret Taylor, are no longer directors “in accordance with the terms of the merger agreement.”

    Musk, according to the filing, became “the sole director of Twitter.”

    The move, while unsurprising, highlights how the world’s richest man has quickly cemented his control over one of the world’s most influential platforms, with few if any checks on his power over the company.

    Almost immediately after Musk completed his $44 billion deal to acquire Twitter on Thursday, Musk terminated at least four of its top executives, including Agrawal.

    The new Twitter owner plans to rethink the company’s content moderation policies and permanent bans for users who previously violated the platform’s policies, including former President Donald Trump, although he said over the weekend that no major decisions have been made yet. He also is reported to be planning large layoffs at the company.

    While Musk has a reputation as an innovative entrepreneur, he is also known for erratic and controversial behavior. This weekend, Musk was widely criticized for tweeting a link to a fringe conspiracy theory about the violent attack on Paul Pelosi, the husband of House Speaker Nancy Pelosi.

    Musk later deleted the tweet.

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  • Musk Plans To Layoff 50% Of Twitter’s Workforce Ahead Of Verification Fee Roll Out Next Week, Reports Say

    Musk Plans To Layoff 50% Of Twitter’s Workforce Ahead Of Verification Fee Roll Out Next Week, Reports Say

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    Topline

    Twitter’s new owner Elon Musk plans to layoff nearly half of Twitter’s workforce by the end of this week in an effort to cut costs, according to several reports, as billionaire also seeks to boost the social media platform’s ability to monetize its user base by changing for verification badges as early as next week.

    Key Facts

    Musk reportedly plans to lay off around 3,700 of Twitter’s 7,500 workers by Friday, various outlets including Bloomberg and the Financial Times reported citing sources at the company.

    Remaining staffers will be expected to return to in-office work starting Monday as Musk also plans to scrap Twitter’s remote work policy which allowed employees to work from anywhere.

    According to Bloomberg, the exact extent and terms of the layoffs are still not final but one of the plans involves offering 60 days worth of severance pay to the laid off workers.

    In a separate report citing sources, Bloomberg reported that Twitter may roll out its update $8-per-month subscription plan—which includes the verification badge as a perk—as early as Monday.

    The Bloomberg report also notes that Twitter’s edit feature, which is currently paywalled behind a Twitter Blue subscription, will be made free to all users.

    Chief Critic

    Musk’s plan to charge $8 a month for a verification badge has drawn criticism from several quarters including political leaders. On Wednesday night, Rep. Alexandria Ocasio-Cortez (D-N.Y.) tweeted: “One guy’s business plan for a $44 billion over-leveraged purchase is apparently to run around and individually ask people for $8. Remember that next time you question yourself or your qualifications.”

    Key Background

    The planned layoffs and decision to charge a monthly fee for verification badges comes at a time when Twitter faces potential backlash from advertisers who are concerned about looser content moderation under Musk’s leadership. Musk, who fashions himself as a “free speech absolutist” has also expressed his desire to wean Twitter off its dependence on ads which make up 90% of its total revenue. Despite this Musk has only vaguely outlined other perks for the revamped ‘Twitter Blue’ subscription outside of a verified badge. On Tuesday he said subscribers will see fewer ads, have the ability to share longer videos or audio clips and receive “priority in replies, mentions & search.” As he tries to build alternate revenue sources, the billionaire has also tried to woo advertisers to remain on the platform by promising he will not allow it to become a “free-for-all hellscape.” Advertising giants, however, remain skeptical and are reportedly urging brands to pause ad spends on Twitter until content moderation concerns are addressed. Musk on Wednesday tweeted out a poll from his account asking if advertisers should support “Freedom of speech or Political ‘correctness,’” implying that companies pulling ads from Twitter over content moderation concerns are opposed to free speech or are only doing so because of political correctness.

    Further Reading

    Musk Plans to Eliminate Half of Twitter Jobs to Cut Costs (Bloomberg)

    Elon Musk plans to cut up to half of Twitter workforce (Financial Times)

    Elon Musk Aims to Start Charging for Twitter Verification Next Week (Bloomberg)

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    Siladitya Ray, Forbes Staff

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  • L’Oréal denies report saying it suspended Twitter ad spending

    L’Oréal denies report saying it suspended Twitter ad spending

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    Cosmetics maker L’Oréal said it had not suspended advertising spending on Twitter, denying a Financial Times report from earlier on Wednesday that cited sources familiar with the matter.

    “L’Oréal did not make any decision to suspend advertising spending on Twitter,” a company spokesperson told Reuters in an email.

    Twitter did not immediately respond to Reuters’ requests for comment.

    Last week, top US automaker General Motors said it had temporarily halted paid advertising on Twitter after Elon Musk completed his takeover of the social media company.

    Musk said in an open letter to advertisers last week that he wanted Twitter to be “the most respected advertising platform in the world.”

    Ad sales represented over 90% of Twitter’s revenue in the second quarter. At a presentation for advertisers in May, some ad agencies and brands were already skeptical about Twitter’s future.

    The beauty group is known for Maybelline mascara and Lancome skincare among other popular brands.

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  • Bracing For A Recession, Twitter Cutting Costs And Moving To Subscription Based Model

    Bracing For A Recession, Twitter Cutting Costs And Moving To Subscription Based Model

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    Elon Musk isn’t losing time revamping Twitter. One of Musk’s first moves at the company was the firing of four key executives, as well as the entire board of directors, with plans reportedly in the works to lay off thousands of employees.

    Although the company had already planned a major staff reduction, Edward Chen, a data scientist formerly in charge of Twitter’s
    TWTR
    spam and health metrics and currently CEO of Surge AI (a content moderation start-up), told the Washington Post the proposal cited in the media to cut roughly 75% of employees was unimaginable. He said it would put users at risk of hacks and exposure to child pornography and other offensive content.

    Still, with a recession looming, tough decisions must be made and Musk is moving quickly to make sure the social media company isn’t reliant as much on advertising revenue, which tends to tank during an economic downturn. At the same time, he is dramatically cutting costs to try and get Twitter’s margins moving rapidly upwards.

    Despite being a private company, the billionaire did convince Twitter co-founder Jack Dorsey to roll his nearly $1 billion 2.4% stake in the public Twitter into the new private Twitter, and Saudi Prince Alwaleed confirmed that he also rolled his $1.9 billion position into the company, making him the second largest shareholder. Alwaleed and Kingdom Holding now own approximately 4% of Twitter.

    In addition, Musk convinced a number of high-profile investors to put billions in the company, so he is under pressure to make changes quickly.

    One proposed change which didn’t go over very well with users was a planned implementation of a $20/month charge so that high-profile users can keep their blue check mark showing that they are a verified account. In essence, it’s a way to avoid fake news because consumers and the media can quickly find out if the comments are from the actual person.

    Musk defended the $20/month charge but later back-tracked to an $8/month charge after a backlash from some users, although he did note that the cost would vary by country. A survey sent out by Jason Calacanis, a longtime start-up investor who encouraged Musk to buy Twitter, asked how much they would pay to have the blue check mark. Of the 1.9 million who responded, more than 80% said they wouldn’t pay anything. The second most popular was $5/month, which got 10% of the votes.

    Many people will have an adverse reaction, even those who can well afford it like author Stephen King who tweeted last October, “$20 a month to keep my blue check? Fuck that, they should pay me. If that gets instituted, I’m gone like Enron.”

    “We need to pay the bills somehow! Twitter cannot entirely rely on advertisers. How about $8?” responded Musk. The Information’s Jessica Lessin responded with an article saying, “I’m far more interested in leaving that emotion aside and focusing on the business rationale of charging Twitter users $8 a month to be “verified” and for other features, like seeing fewer ads. Many commentators have pointed out that this subscription tier isn’t likely to net Twitter much money. There are 423,700 users verified currently. If they all paid, that would be $41 million in new revenue.”

    However, Musk seems to be targeting a more broad adoption of the monthly fee, tweeting “Twitter’s current lords & peasants system for who has or doesn’t have a blue checkmark is bullshit.”

    FiveThirtyEight political writer Nate Silver had a similar reaction to Stephen King. “I’m probably the perfect target for this, use Twitter a ton, can afford $20/mo, not particularly anti-Elon, but my reaction is that I’ve generated a ton of valuable free content for Twitter over the years and they can go fuck themselves,” he wrote on Twitter.

    Musk is also planning to convert the $4.99 premium service called Twitter Blue, which has a function allowing you to edit your tweets 30 minutes after posting them as well as test new features before they are rolled out, into a required subscription for those who want to keep their verified status. He reportedly told employees to get the program in place by November 7 or they are fired. The price point on the revamped service is set to rise from $4.99/month to $7.99/month.

    Another issue Musk is facing is getting advertisers on board. Both Havas Media and Interpublic Group
    IPG
    have told their clients they should temporarily stop advertising on Twitter due to concerns over the company’s ability to monitor its content.

    Also weighing heavily on Musk’s mind must be data which was exclusively reported by Reuters that heavy tweeters—which account for less than 10% of users but 90% of all tweets and half of global revenue—have been in “absolute decline since the pandemic.” This came from an internal document entitled “Where did the Tweeters Go?” which was obtained by Reuters.

    Heavy tweeters are defined as those who login six or seven days a week and tweet about three to four times a week. Unfortunately, news, sports and entertainment, all attractive to advertisers, are in decline amongst English-speaking heavy tweeters while cryptocurrency and “Not Safe For Work,” NFSW (which includes nudity and pornography), are rising rapidly for this group. Adult content comprises 13% of content on twitter and is not popular with most advertisers.

    This is certainly a challenge short-term as Musk has said that anyone previously removed from the service for violating its rules won’t be allowed back onto the platform until the company has a clear process in place, which will be at least a few weeks.

    He said, “Twitter’s content moderation council will include representatives with widely divergent views, which will certainly include the civil rights community and groups who face hate-fueled violence.”

    This may be leaving ad agencies and advertisers scratching their heads as to what the product will look like and which advertisers it will be attractive to. Elon Musk is very quick to change course so it may be wise for advertisers to sit on the sidelines to wait and see how the social media platform evolves.

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    Derek Baine, Contributor

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  • Elon Musk says he wants to charge $8 a month for Twitter’s “blue check” verification badge

    Elon Musk says he wants to charge $8 a month for Twitter’s “blue check” verification badge

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    Twitter CEO Elon Musk now says he wants to charge users $8 per month to retain their verification badge or obtain one on the platform — after an earlier report suggested he might seek even more for the privilege.

    On Tuesday, Musk outlined his plan on Twitter and called the current system that gives out the blue checkmark badges “bulls**t.” The blue check feature, indicating that the person’s identity has been verified, would become part of Twitter Blue, which costs $5 a month. 

    “Power to the people! Blue for $8/month,” he wrote.

    The blue checkmark has become a coveted marker of status among some of the celebrities, politicians and journalists who are heavy users of Twitter. On Sunday, Musk said the whole verification process is getting “revamped.” 

    For the $8 monthly charge, users will also get priority in replies, mentions and search, ability to post longer videos and audio, and half as many ads, Musk said. He said that there would be a “paywall bypass” for publishers who are “willing to work with us.”

    Elon Musk and Twitter
    Elon Musk took ownership of Twitter in October 2022.

    Anadolu Agency/Getty Images


    The new strategy, he said, will give Twitter a revenue stream to reward content creators. 

    He added that there will be a secondary tag below a public figure’s name, much like there is now for politicians.

    Opponents of the approach say it will make it easier for users to spread disinformation or to impersonate someone else on Twitter. Congresswoman Alexandria Ocasio-Cortez mocked the idea of Musk charging user fees.

    “Lmao at a billionaire earnestly trying to sell people on the idea that ‘free speech’ is actually a $8/mo subscription plan,” she tweeted

    Still, Musk is undeterred. 

    “To all complainers, please continue complaining, but it will cost $8,” he wrote. 

    The SpaceX and Tesla CEO went on to share a clip of the British comedy show Monty Python, which he says inspired him. “Totally stole idea of charging for insults & arguments from Monty Python tbh,” he wrote.

    The plan comes after The Verge reported Musk was looking to charge $20 a month for blue check users — prompting fierce pushback, including from legendary horror writer Stephen King, who said “Twitter should pay” him to stay on the app.  

    “If that gets instituted, I’m gone like Enron,” King tweeted, referring to the energy company that filed for bankruptcy in 2001. 

    Users and tech industry analysts have voiced an array of concerns about what Twitter may look like under Musk, who declared his intent to manage the platform as a “free speech” space.

    Since Musk took charge of Twitter last week, the platform has seen a significant spike in hate speech, according to a new study. Researchers from Montclair State University found that the 12 hours immediately following Musk’s ascension to ownership saw a much more “hostile” environment on Twitter. 

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  • Twitter saw an

    Twitter saw an

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    After months of contention between Elon Musk and Twitter executives over his bid to own the company, the Tesla founder was officially given control on Friday. But as the new leader emerged at the helm, the platform saw a massive spike in hate speech, a new study found. 

    Researchers from Montclair State University found that the 12 hours immediately following Musk’s ascension to ownership saw a much more “hostile” environment on Twitter. The team looked at tweets filled with “vulgar and hostile” rhetoric aimed at people based on their race, religion, ethnicity and orientation, such as the “n-word,” “k-word,” and “f-word,” to find out just how bad it got. 

    And what they found was an “immediate, visible, and measurable spike.” 

    In the week leading up to Musk’s acquisition, researchers said there were no more than 84 hostile tweets an hour on the platform. But from midnight on October 28 – the day Musk took ownership – to noon the next day, there were 4,778 hate-filled tweets. That accounts for more than 398 tweets an hour, about 4.7 times higher than the seven-day average leading up to that day. The potential reach for those tweets was more than 3 million, researchers found. 

    Researchers also said there was an increase in negative sentiment, with more than 67% of the tweets sent after Musk’s takeover having a negative tone.

    “In sum, the content and tone of Twitter posts became measurably more oriented towards hate speech on the day Elon Musk became CEO of the company with significant reach attained for this hate content,” the study says. 

    Yoel Roth, Twitter’s head of safety and security, has also confirmed an increase in hate speech. On Monday, he tweeted that the company has seen a “surge in hateful conduct” and removed more than 1,500 accounts. A graph he shared of total impression of tweets with at least one slur shows that the increase kicked off on Friday very shortly after the Musk acquisition was announced. It appeared to spike between Saturday and Sunday. 

    Roth described the surge as a “short-term trolling campaign” with many of the accounts they removed stemming from repeated “bad actors.” On Saturday, he said as an example that more than 50,000 tweets that used a particular slur were issued by just 300 accounts, most of which were “inauthentic.” 

    “These issues aren’t new, and the people targeted by hateful conduct aren’t numbers or data points. We’re going to continue investing in policy and technology to make things better,” he tweeted.

    While Montclair researchers made it clear that the acquisition saw an immediate increase in hostile language on the platform, what remains murky is what specifically caused it. Musk has long said that this ownership of Twitter would come with fewer restrictions, but researchers said it’s “speculative” to know whether his potential policy changes would have caused the spike. 

    It’s possible, however, that based on his past sentiments users resorted to the language because they assumed they would no longer be banned or suspended from the platform. It’s also possible that having an “unmoderated platform was potentially a source of excitement,” researchers said. 

    Musk has not explicitly said what will be tolerated on the platform since the surge began, although he has retweeted Roth’s statements about the surge. On Friday, Musk said that Twitter will form a “content moderation council with widely diverse viewpoints” and that no major content decisions would be made before that council can convene. 

    “Twitter will not allow anyone who was de-platformed for violating Twitter rules back on platform until we have a clear process for doing so, which will take at least a few more weeks,” Musk said Tuesday night. “Twitter’s content moderation council will include representatives with widely divergent views, which will certainly include the civil rights community and groups who face hate-fueled violence.”

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  • After Elon Musk’s antics on Twitter, advertisers may think twice for now | CNN Business

    After Elon Musk’s antics on Twitter, advertisers may think twice for now | CNN Business

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    New York
    CNN Business
     — 

    Hours before news broke on Thursday that he had completed his $44 billion acquisition of Twitter, Elon Musk wrote an open letter to advertisers stressing that he doesn’t want the platform to become a “free-for-all hellscape.”

    But that attempt at reassuring the advertising industry, which makes up the vast majority of Twitter’s business, was quickly overshadowed by Musk’s first days as the new owner of the platform. Some industry experts are now predicting an advertiser exodus could be coming sooner than expected.

    Within the first 24 hours of his ownership, there were several reports that racist comments, hate speech and other objectionable content had increased significantly on Twitter as users tested Musk’s promise that he would allow “free speech” on the platform. Then over the weekend, Musk was widely criticized for tweeting (then deleting without providing a reason) a link to a fringe conspiracy theory about the violent attack on Paul Pelosi, husband of House Speaker Nancy Pelosi.

    “I think advertisers are bracing to leave,” said Claire Atkin, co-founder of the adtech watchdog Check My Ads. “It’s very possibly a seismic shift for marketers and advertisers.”

    After months of uncertainty about Musk’s pending acquisition, advertisers must now confront questions around how Musk will change the platform, which is already an also-ran in the digital ad space despite its outsized political influence. Musk, known as both an innovative entrepreneur and an erratic figure, has promised to rethink Twitter’s content moderation policies and undo permanent bans of controversial figures, including former President Donald Trump.

    Brands have long been sensitive to the types of content their ads run against, an issue made more complicated by social media. Most marketers bristle at the thought of having their ads run alongside toxic content such as hate speech, pornography or misinformation. And if Twitter continues to struggle with an uptick in such content — or if Musk updates Twitter’s policies to explicitly allow some of it — companies may cease advertising there for fear of risks to their brands, or because they’re reaching a smaller audience if regular users also depart.

    “If you think about the money, investment and care, real care and attention that goes into connecting with consumers, and then to have your ad be published next to lies … it goes against everything a brand wants to do,” Atkin said.

    Musk, who has previously tweeted “I hate advertising” and indicated he wants to make the platform less reliant on it, is also confronting the reality that about 90% of Twitter’s revenue comes from advertising. In addition to the open letter to advertisers, Musk’s team spent Monday “meeting with the marketing and advertising community” in New York, according to Jason Calacanis, a member of Musk’s inner circle.

    In public and private conversations with advertisers, Twitter has also stressed that its content policies have not changed following the acquisition, and Musk has said they won’t change until a new content moderation council is appointed (apparently to replace the company’s existing Trust and Safety council).

    But Musk may face an uphill battle. Twitter’s digital advertising business is much smaller than those of Meta, Google and Amazon, and doesn’t have growth and user demographics of TikTok. And many brands have already reduced digital ad spending in recent months amid the economic downturn. It may not take much for brands to cut back more.

    General Motors

    (GM)
    , which competes with Musk’s Tesla

    (TSLA)
    , said on Friday it would pause paying for advertising on Twitter while it evaluates “Twitter’s new direction.” CNN on Monday reached out to more than a dozen other brands that advertise on Twitter, most of which did not respond. Toyota

    (TM)
    , another Tesla

    (TSLA)
    competitor, told CNN that it is “in discussions with key stakeholders and monitoring the situation” on Twitter. Ben & Jerry’s said that “at this point we have not considered taking any action.”

    On Monday, advertising giant Interpublic Group advised clients to pause advertising on Twitter for the next week as it awaits more clarity on the platform’s plans for trust and safety and its capacity to carry out those plans under new owner Elon Musk, a person familiar with the situation told CNN. The guidance was sent via an internal memo to IPG employees who work with clients in its Mediabrands ad-buying arm, which include major consumer brands including Coca Cola, Johnson & Johnson, Spotify, Unilever and more.

    Also on Monday, the Global Alliance of Responsible Media, a leading consortium of advertisers and platforms, including Twitter, published an open letter to Musk, encouraging him to ensure Twitter continues to align with the group’s standards, which designate hate speech, violence, harassment and insensitive treatment of debated social issues as “not appropriate for any advertising support.” In response to the letter, Musk said in a tweet, “Twitter’s commitment to brand safety is unchanged,” and Twitter Chief Customer Officer Sarah Personette added that the company takes seriously brand safety and its partnership with the organization. (Personette tweeted on Tuesday that she resigned from the company last week.)

    Also on Monday, Angelo Carusone, CEO of media watchdog Media Matters for America, tweeted calling on major Twitter advertisers “to be putting pressure on Twitter right now” to better address the increase in hate and other toxic content. On Tuesday, a group of more than 40 civil society organizations, including Media Matters, the NAACP, GLAAD and the Center for Countering Digital Hate, sent an open letter to Twitter’s top advertisers calling on them to halt advertising on the platform if Musk cuts back on content moderation.

    “Advertisers are very sensitive to the changing landscape of social media,” said Atkin, adding that the question for Twitter is now “whether Elon Musk can continue to broker trust with advertisers or if he’s going to continue to sow uncertainty and fear.”

    In response to a request for comment on this story, a Twitter representative pointed CNN to the earlier tweets by Musk and Personette and Musk’s letter to advertisers, as well as a tweet by Twitter Head of Safety and Integrity Yoel Roth noting that the platform’s policies hadn’t changed, although it was facing an uptick in hate content from mostly non-human accounts.

    In a separate tweet thread Monday, Roth said that the company had since Saturday “been focused on addressing the surge in hateful conduct on Twitter.” He added: “We’ve made measurable progress, removing more than 1500 accounts and reducing impressions on this content to nearly zero.”

    One advertising executive told CNN on Monday that dozens of their clients had reached out in recent days for guidance on the situation.

    “It seems like a reasonable time for advertisers to rethink things,” said David Karpf, associate professor in the School of Media and Public Affairs at George Washington University. “I think advertisers are going to look at this and say, is the weak Twitter advertising product becoming a better or worse investment? And it’s going to be the same or a little worse … advertisers certainly aren’t going to start spending more on Twitter anytime soon.”

    There is precedent for advertisers stepping away from platforms because of hateful content. In 2020, dozens of brands publicly signed on to the #StopHateForProfit advertiser boycott of Facebook, which called out the platform for its “repeated failure to meaningfully address the vast proliferation of hate on its platforms.”

    But when it comes to Twitter, brands may have to tread carefully to avoid backlash. After GM announced its Twitter advertising pause, some users on the platform, including some right-leaning political figures, have called for a boycott of the automaker.

    Because Musk has positioned himself as a “free speech” maximalist, and one with strong support among many conservative politicians, brands risk being framed as anti-free speech if they exit the platform. But brands also risk appearing to implicitly endorse hate speech and other harmful content if they stay, meaning that many may decide to quietly pause their advertising on the site without a formal announcement.

    “Advertisers are finding it hard to weigh in publicly on what is kind of an unwinnable position to take,” the advertising executive told CNN.

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