Topline
Elon Musk said Tuesday that he shut down a new verification program on Twitter just hours after it launched, saying the platform would “do lots of dumb things” in the coming months to see what is successful as the company tries to capture much-needed revenue, including potentially offering payment processing on the platform.
Elon Musk attends The 2022 Met Gala Celebrating “In America: An Anthology of Fashion” at The … [+]
Key Facts
Late Tuesday, Twitter announced it would introduce a new gray check mark to verify “official” accounts, like those belonging to government accounts, media outlets, companies and some public figures that will distinguish them from the Twitter Blue subscription, which will allow any users that pay $7.99 a month to receive a blue check mark.
However, by Wednesday morning Musk tweeted that he “killed” the idea, adding that the “blue check will be the great leveler.”
He explained that Twitter will “do lots of dumb things in coming months” as the platform experiments with different features, and will “keep what works and change what doesn’t.”
Last week, Twitter registered with the Treasury Department’s Financial Crimes Enforcement Network, an early step in eventually processing payments on the platform, according to filings obtained by The New York Times (companies that cash checks, transfer money and exchange currency must register with the agency).
Musk said during a Twitter Space Wednesday he hopes to eventually allow Twitter users to send money through the platform and even offer an “extremely compelling” money market with a high yield to “make the app as useful as possible.”
What To Watch For
Musk has previously said purchasing Twitter would allow him to create an “everything app” that goes beyond social media, drawing comparisons to WeChat in China, an app used by more than 1 billion people to instant message, search for news, order takeout and hail cabs.
Crucial Quote
“When we make a dumb move, we correct it really quickly. That’s what matters,” Musk said Wednesday during a Twitter Space.
Big Number
$44 billion. That’s how much Musk spent on Twitter when he purchased the company. Musk said last week that while Twitter is a “poorly managed business” he bought the platform “on the basis of what it could become.” Musk first acquired a 9% stake in Twitter in April and said he intended to purchase the company. He changed his mind in July, saying he was concerned about the number of fake accounts on the platform, but Twitter launched a lawsuit to force Musk to follow through on the acquisition.
Key Background
Musk has repeatedly said he intends to do away with Twitter’s previous blue check verification system, in which the labels are free and largely reserved for public figures like celebrities, politicians, companies and news outlets. On Saturday, Twitter officially launched the new system, which will also allow subscribers to post longer videos and have their content prioritized on timelines.
Tangent
Musk is trying to drive new revenue at Twitter amid turmoil at the company. Twitter started mass layoffs last week that were expected to affect 3,700 employees, or about half of the workforce. Musk said Friday he had no choice but to shed staff because the platform was losing $4 million a day. Some of the platform’s major advertisers have pulled their Twitter spending over concerns about the company’s loosened content moderation. Musk said the company had done its “absolute best to appease them,” adding that “nothing has worked.”
Further Reading
Twitter Files Paperwork to Enter Payments Business (New York Times)
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