Don’t know where Twitter is headed: Parag Agrawal
By: Chandrashekar Bhat
TWITTER’S India-born CEO Parag Agrawal has told its worried employees that he doesn’t know “what direction this company will go in” once the social media giant is formally taken over by billionaire Elon Musk.
The remarks by Agrawal, who took over the helm of Twitter just five months ago, came during a meeting with its employees on Monday (25) after the company said it had accepted Musk’s offer to buy it for about $44 billion (£34.6 bn).
“It’s important to acknowledge that all of you have many different feelings about what is happening,” The New York Times quoted Agrawal as saying.
The American daily said Agrawal told employees that he estimated the deal might take three to six months to complete.
“In this moment, we operate Twitter as we always have,” he said, adding that “how we run the company, the decisions we make, and the positive changes we drive — that will be on us, and under our control.”
Uncertainty now hangs over the fate of Twitter employees, who voiced concern over layoffs in the wake of the acquisition by Musk.
It is unclear how hands-on Musk plans to be at Twitter, the newspaper said.
“Among the unanswered issues are whom he might pick to lead the company and how involved he would be in running the service,” it said, adding that Agrawal is “expected to remain in charge at least until the deal closes.”
In the employee meeting, Agrawal acknowledged the uncertainty ahead.
“Once the deal closes, we don’t know what direction this company will go in,” Agarwal, 37, said.
Upon completion of the transaction, Twitter will become a privately held company.
The transaction, which has been unanimously approved by the Twitter board of directors, is expected to close in 2022, subject to stockholder and regulatory approvals and other customary closing conditions.
As Twitter Chairman Bret Taylor announced that Tesla and SpaceX founder Musk will acquire the company, Agrawal tweeted, “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”
In the meeting with Twitter employees, Agrawal and Taylor “nodded to the emotions of the day and how workers were most likely processing the news of a sale.”
Agrawal said compensation would remain largely the same under Musk but “he did not make the same assurances about Twitter’s policies and culture,” the newspaper said.
Agrawal told employees that their stock options would convert to cash when the deal closes. Employees would receive the same benefit packages for a year after the deal was finalised, the report said.
In response to a question about whether former president Donald Trump, who was permanently suspended from the social networking site in January 2021, would be allowed back on the platform, Agrawal said, “We constantly evolve our policies.”
Following the acquisition, Musk, the world’s wealthiest person, said, “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”
“I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it,” the Tesla CEO said.
Twitter co-founder Jack Dorsey, who had stepped down in November last year, had declared that his “trust” in Agrawal “as our CEO is bone deep”.
Dorsey had said that after almost 16 years at the company, he had decided it was finally time for him to leave and the first reason he had given for why it was the “right time” for his departure was “Parag becoming our CEO.”
“The board ran a rigorous process considering all options and unanimously appointed Parag. He’s been my choice for some time given how deeply he understands the company and its needs. Parag has been behind every critical decision that helped turn this company around. He’s curious, probing, rational, creative, demanding, self-aware, and humble. He leads with heart and soul, and is someone I learn from daily,” Dorsey had said.
Agrawal, named CEO on November 29, 2021, had said in a note posted on Twitter that he was “honoured and humbled” by his appointment and expressed gratitude to Dorsey’s “continued mentorship and your friendship.”
An IIT Bombay and Stanford alumnus, Agrawal had joined Twitter 10 years ago when there were fewer than 1,000 employees.
“While it was a decade ago, those days feel like yesterday to me. I’ve walked in your shoes, I’ve seen the ups and downs, the challenges and obstacles, the wins and the mistakes. But then and now, above all else, I see Twitter’s incredible impact, our continued progress, and the exciting opportunities ahead of us,” he had said in the post following his appointment.
“Once the deal closes we don’t know which direction the platform will go”
By Alex Heath and Mia Sato Apr 25, 2022,
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Twitter CEO Parag Agrawal didn’t have many concrete answers for staff about what will happen once Elon Musk takes over the company later this year. During a virtual all-hands call Monday, hours after the company announced it had agreed to be bought by Musk for $44 billion, Agrawal fielded questions on the future of his job, the company’s board, and possible layoffs.
Layoffs aren’t planned “at this time,” Agrawal said, according to a person who heard the remarks and who asked to remain anonymous. Agrawal also said that he’d remain as CEO until the deal’s close, but he didn’t comment about what would happen after that. The company’s board will dissolve once the deal closes, said Brett Taylor, the board’s independent chair.
“WE DON’T HAVE ALL THE ANSWERS.”
“There is indeed uncertainty about what will happen after the deal closes,” Agrawal told staff.
Since Musk’s intention to buy Twitter became public earlier this month, some Twitter employees have expressed discomfort or outright resistance to Musk’s takeover of the company. And Musk has made clear he wants to see changes on the platform, insisting his attempts to purchase it aren’t financial. Calling Twitter a “de facto town square,” Musk said last week he believes Twitter should “open source the algorithm.”
Musk has repeatedly focused on the utility of Twitter as a space for free speech, and the question of former President Donald Trump’s presence on the platform came up during the all-staff meeting today. Trump was banned from the platform in 2021, but Agrawal didn’t have a definitive answer to whether Trump would have access to his favorite social network going forward. Trump today said he wouldn’t return to Twitter even if he was welcomed back under its new owner, and that he would use his Truth Social platform instead.
“Once the deal closes we don’t know which direction the platform will go,” Agrawal told staff regarding Trump, saying it was a question that should be addressed with Musk.
The deal is expected to close later this year. Until Musk takes over, Twitter’s staff may have to wait to hear about how things will change. “We don’t have all the answers,” Agrawal said. “This is a period of uncertainty.”
Agrawal also told employees there were no plans for layoffs.
By Sheila Dang and Katie Paul
Twitter Inc Chief Executive Parag Agrawal told employees on Monday that the future of the social media firm is uncertain after the deal to be taken private under billionaire Elon Musk closes. He was speaking during a company-wide town hall meeting that was heard by Reuters.
Musk will join Twitter staff for a question-and-answer session at a later date, the company told employees.
As Agrawal listened to staff questions about Musk's plans for the company, the possibility of layoffs and the board's rationale for the deal, he deferred many questions as ones that should be asked of Musk.
Musk has said he believes Twitter should be a platform for free speech. Employees asked Agrawal whether former U.S. President Donald Trump, who was permanently suspended from Twitter last year, would be allowed to return once Musk takes over.
"Once the deal closes, we don't know which direction the platform will go," Agrawal said, referring to the question regarding Trump. "I believe when we have an opportunity to speak with Elon, it's a question we should address with him."
Agrawal also told employees there were no plans for layoffs.
Bret Taylor, chair of Twitter's board of directors, aimed to reassure employees that the agreement with Musk prioritized "operating continuity" until the deal was closed.
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"I think we feel very comfortable that (the deal) gives this team the ability to continue to make the company successful in between signing and closing the transaction," Taylor said.
© Copyright Thomson Reuters 2022. All rights reserved.
2022/4/26
© Agence France-Presse
New York (AFP) - Billionaire Elon Musk is capturing a social media prize with his deal to buy Twitter, which has become a global stage for companies, activists, celebrities, politicians and more.
Despite its reach and impact, the San Francisco-based one-to-many messaging platform has struggled to generate the kind of revenue seen by social media peers such as Facebook and TikTok.
Since its founding in March of 2006, Twitter has amassed 217 million daily active users, more than 80 percent of them outside the United States.
Twitter did not taste profit until the end of 2017, and the following year was its first to finish financially in the black.
Twitter reported a loss of $221 million last year.
While often associated with the giant Silicon Valley social media platforms, to the extent that co-founder and then-chief Jack Dorsey has been grilled by US legislators, it is vastly eclipsed by its peers when it comes to profit and share value.
A challenge that has vexed Twitter since its inception is how to weave in ads or other money-making tactics into the real-time flow of posts by users without ruining the experience people love on the platform.
The fleeting nature of tweets has meant that marketing messages in posts may not spend much time in the spotlight for Twitter users to see.
An added challenge is how to make sure ads, sometimes in the form of tweets promoted to the tops of feeds, do not wind up next to vitriol, misinformation or other troubling content that brands do not want to be associated with.
However, politicians, institutions and marketers have learned how to turn Twitter to their advantage with clever or controversial posts that get shared as "retweets." But while these can spark viral online conversations, they do not necessarily result in Twitter directly making money from them.
Town square?
Some have opined that Twitter, while hard to squeeze money out of, has become an internet version of the "town square," and is so important that it should almost be considered a public utility and come with free speech protections.
Twitter was the preferred method of communication during former US President Donald Trump's four years in office, as opposed to press briefings at which he would face questions from reporters.
Investors had essentially steered clear of Twitter stock, which prior to Musk's uninvited takeover bid launched three weeks ago was worth 12 percent less than it was priced when the company's shares first went public more than eight years ago.
Twitter last year introduced a "Blue" subscription tier offering exclusive content and features, and Musk has made it clear he is a fan of such models at the platform.
There is a risk though, that if Musk follows through on his vow to let people say pretty much anything they want on Twitter, moderate users will not want to pay subscriptions to be in a platform turned hostile, said Hargreaves Lansdown analyst Susannah Streeter.
Money over mindfulness?
Musk taking Twitter private will provide more room to maneuver, but will not guarantee success, according to analysts.
As a private company, Twitter will be free to make changes that might irk shareholders or take longer than they like to pay off.
Musk and his partners buying Twitter will be able to focus more intently on the financial side of the business, and not fret over issues such as diversity that might be important to shareholders at a public firm.
And despite talk of making the software running Twitter more transparent, the business side would have to disclose less to the public as a private operation.
Musk will be able to shrug off concerns about the environment, diversity or political correctness and decide "to hell with it", running Twitter the way he thinks is best, William Lee of the Milken Institute told AFP.
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