If Twitter buys Elon Musk and privatizes it, it could be a relief for rival social networking companies.
Elon Musk’s acquisition of Twitter has led to the acquisition of YouTube, YouTube and Facebook. Snap Facebook’s parent companies Meta and TikTok could boost ad revenue Twitter, which relies heavily on advertising revenue, announced Monday it accepted Elon Musk’s offer to buy the company for $ 44 billion.
Of the $ 1.57 billion in Twitter revenue for the fourth quarter, $ 1.41 billion came from advertising sales. Market analysts predict that the company’s advertising revenue could fall after Elon Musk acquired Twitter and privatized it. Tesla and SpaceX CEO Matt have revealed that they will shape Twitter into a free speech platform.
Content moderation for content freedom needs to be reduced. Brands that want to advertise on content permissions without content moderation on social media will reduce the cost of advertising on Twitter.
“About 85% of Twitter revenue comes from brand ads. If Mr Mats puts Free Speech first, advertisers will move their budgets to other trusted channels, which could help YouTube, Snap, Meta and TikTok.” JMP Market Analysts
In July 2020, Facebook launched a campaign against top advertisers Unilever, Starbucks Coca-Cola; Verizon Honda There have been advertising strikes by companies such as Diageo. In 2017, brands such as Coca-Cola and Microsoft removed their YouTube ads for erroneous content.
Advertisers are worried that the same thing could happen if Free Speech is released on Twitter. However, Apple’s privacy changes could brighten up expectations for Facebook, which could hit $ 10 billion in ad revenue this year.