X TOS venue changes to Northern District of Texas
X’s new terms of service, which take effect Nov. 15, stipulates that lawsuits against the social media platform must be filed in the U.S. District Court for the Northern District of Texas — not the Western District of Texas, where the company is headquartered.
Musk borrowed $1 billion from SpaceX in same month of Twitter deal
The Wall Street Journal reports that Musk borrowed $1 billion from SpaceX in October 2022, the same month he bought Twitter. The loan was backed by some of Musk’s SpaceX stock and Musk drew all of the funds down the same month. According to a filing with the Federal Communications Commission, as of March 2023, Musk is SpaceX’s largest shareholder with a 42% stake and almost 79% of its voting power. SpaceX had $4.7 billion in cash and securities on hand at the end of 2022.
Twitter signs and equipment to be auctioned
In part due to its rebrand, X announces it is auctioning off a large number of Twitter-branded items, including the bird logo that was previously on the outside of the building. Other items for sale include sculptures, booths, chairs, computers, couches, musical equipment and artworks.
The auction, hosted by Heritage Global Partners, will start on September 12 at 7 a.m. PST and end on September 14 at 9 a.m. PST. All items have a starting bid of $25. They are all being sold out of X headquarters in San Francisco. According to HGP’s terms and conditions, buyers must use the items in their businesses and cannot purchase them for personal use.
X sign removed from headquarter’s roof
The X sign on the former Twitter headquarters building’s roof is removed, after complaints were made to San Francisco’s Department of Building Inspection. One complaint described the sign as displaying “extremely intense white stroboscopic light” that was “causing distress and nausea,” while others said it could topple in an earthquake. After earlier attempts to inspect the sign had been rebuffed by X staff, inspectors once again returned to the site, only to see the sign being dismanted. Inspector:
By the time I left the entire structure had been removed.
The city says that X would be assessed fees for the unpermitted installation of the illuminated structure, without mentioning an estimate.
The giant 𝕏 sign has been removed from the top of the HQ building.pic.twitter.com/AlAnlUpCQL
— Sawyer Merritt (@SawyerMerritt) July 31, 2023
Musk rebrands Twitter as X
Musk confirms Twitter’s rebrand by changing the apps’s logo from the bird to X, which he describes as ‘minimalist art deco,’ He also changes his Twitter bio to ‘X.com’, which redirects to what used to be twitter.com, and his profile picture to X, In a late night email, Musk writes to Twitter employees confirming the changes.
We are indeed changing to X…This is my last message from a Twitter email.
Going with minimalist art deco on the upper right.
Probably changes later, certainly will be refined.
— Elon Musk (@elonmusk) July 24, 2023
In a Twitter Space – an audio livestream on the platform –Musk said the changes ‘should have been done a long time ago’ and that he was ‘sorry it took so long.’ Musk also said that posts made under the site’s new identity would be called ‘X’s.’
Musk: Twitter logo will change to X
Musk says Twitter is planning to change its logo, Larry the Bird, which has been in place since creation of the company in 2006, to an X. Along with the logo change, the domain for the social media site will become X.com, and Twitter will become a subsidiary of Musk-owned X-Corp.
And soon we shall bid adieu to the twitter brand and, gradually, all the birds
And soon we shall bid adieu to the twitter brand and, gradually, all the birds
— Elon Musk (@elonmusk) July 23, 2023
Musk then asked for logo suggestions:
If a good enough X logo is posted tonight, we’ll make go live worldwide tomorrow
If a good enough X logo is posted tonight, we’ll make go live worldwide tomorrow
— Elon Musk (@elonmusk) July 23, 2023
Thousands of users replied before Musk posted a short video of an X with a flickering background.
— Elon Musk (@elonmusk) July 23, 2023
Musk: Twitter’s ad revenue down ~50%
Musk says Twitter has a “negative cash flow” and its advertising revenue has declined by about 50% amid a “heavy debt load” as competition between Twitter and Threads intensifies. This comes just as Twitter began paying content creators for posting advertisements. Some users are reporting payouts of over $100,000, and Musk himself says Twitter will pay creators $5 million through its first block of payments. It is unclear, though, which kinds of posts or which users are eligible for advertising payments, and some users have criticized the platform’s payout program.
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
— Elon Musk (@elonmusk) July 15, 2023
Twitter’s U.S. ad sales drop 59%
According to an internal presentation obtained by The New York Times, Twitter’s U.S. advertising revenue for the five weeks from April 1 to the first week of May was $88 million, down 59% from a year earlier. The document says the company has regularly fallen short of its U.S. weekly sales projections, sometimes by as much as 30 percent. The company has forecast that its U.S. ad revenue this month will be down at least 56 percent each week compared with a year ago, according to one internal document. Neither CEO Yaccarino nor Musk commented on the report.
According to staff interviews, Twitter’s ad sales staff is concerned that advertisers may be spooked by a rise in hate speech and pornography on the social network, as well as more ads featuring online gambling and marijuana products. In one week last month, four of Twitter’s top 10 U.S. advertisers were online gambling and fantasy sports betting companies, according to one presentation. Twitter has also started allowing ads for cannabis accessories, including “bongs, vapes, rolling paper,” as well as erectile dysfunction products and services, according to internal emails.
Former employees say some of Twitter’s biggest advertisers — including Apple, Amazon and Disney — have been spending less on the platform than last year, and that large specialized “banner” ads on Twitter’s trends page that can cost $500,000 for 24 hours and are almost always bought by large brands to promote events, shows or movies, are often going unfilled.
Fidelity: Twitter worth 33% of Musk’s purchase price
According to Fidelity, which helped finance Musk’s purchase of Twitter, its valuation of its equity stake in the company puts the total value of Twitter at $15 billion, around 33% of what Musk originally paid for it. Fidelity downgraded its holdings in the company by 56% a month after the acquisition, by 63% in February 2023, and now by 66%. Musk’s investment in Twitter is now worth $8.8 billion, according to the Bloomberg Billionaires Index, which uses Fidelity’s valuation to calculate the value of his holding. Musk spent more than $25 billion to acquire an estimated 79% stake in the company in 2022.
Tesla releases promo video on Twitter
Tesla releases a two-minute Twitter video on its Tesla Asia account (which has only 172,000 followers, compared to its main account’s 21 million) called “Drive to believe.” The ad highlights Tesla’s Autopilot feature, infotainment system, the Tesla app, as well as featuring a Model 3 owner and mother of two children saying she was initially drawn to the vehicle because of its technology, but has grown to appreciate its safety measures as well.
I would say it’s one of the greatest gifts, that my kids can have, in terms of their future.
Drive to believe——why she chose Tesla? ❤️ pic.twitter.com/LXtGl15QUy
— Tesla Asia (@Tesla_Asia) May 19, 2023
X Corp acquires tech recruiting platform Laskie
In its first deal under Musk’s leadership, Twitter’s parent company X Corp acquires Laskie, a talent recruitment tool. Though the exact price of the acquisition is unclear, it was apparently “tens of millions” of dollars, with the deal including cash and equity elements.
Laskie is a San-Francisco based startup founded in 2021 by current CEO Chris Bakke, and apparently has somewhere between 11 and 50 employees. Its aim has been to connect tech talent with employers using tools that are “designed to make your job search faster, more efficient, and less stressful,” but now the platform’s website displays a message saying its platform is “no longer available.” Twitter has not publicly confirmed the deal.
Musk announces Twitter CEO hire
Musk says he has found a new CEO for Twitter, a woman who will start in six week’s time. Musk does not revealed her identity. Musk says he will become CTO.
Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks! My role will transition to being exec chair & CTO, overseeing product, software & sysops.
Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks!
My role will transition to being exec chair & CTO, overseeing product, software & sysops.
— Elon Musk (@elonmusk) May 11, 2023
Twitter down to 1000 employees
Twitter downsizes to only 1,000 employees, including about 500 engineers, about 90% less than worked for the platform just before Musk took over. One employee states, “performance reviews are constant,” leading to frequent firings with little to no explanation given and causing remaining workers scramble to meet demands. Even before the slash, hundreds of workers had already left. Musk:
The issue is like the company’s going to go bankrupt if we do not cut costs immediately. This is not a caring, uncaring situation. It’s like if the whole ship sinks then nobody’s got a job.
Twitter source code posted to GitHub
Part of Twitter’s source code is posted on GitHub but has been taken down when Twitter requested its removal. In the takedown request, Twitter said an account called ‘FreeSpeechEnthusiast’ had infringed copyrights owned by the company, and asked for information that could identify the owner of the account. GitHub:
GitHub does not generally comment on decisions to remove content. However, in the interest of transparency, we share every DMCA [Digital Millennium Copyright Act] takedown request publicly
Musk’s cost-cutting hurts Goldman Sachs
Musk’s “cost-cutting exercise” contributes to a rapid growth in delinquencies of commercial real estate loans for Goldman Sachs. After Musk’s attempt to avoid taking over Twitter, he began seeking ways to cut costs, which included not paying rent. Now, Twitter’s landlord, Columbia Property, is suing and defaulted on its loan from Goldman Sachs as a result. (Goldman Sachs was part of a group of banks that provided $1.7 billion in loans to Columbia Property. The loan was secured against seven office buildings in San Francisco and New York, two of which accommodate large Twitter offices.)
Massive Twitter outage
Many users find they cannot tweet, retweet, quote tweet and direct message on Twitter, with users recieving messages such as:
You are over the daily limit for sending tweets
Some users could not access their direct message, with the tab only showing the message “something went wrong.”
Musk sends a brief email to Twitter staff, instructing them to “pause new feature development” in order to ensure “system stability and robustness”.
Twitter may not be working as expected for some of you. Sorry for the trouble. We're aware and working to get this fixed.
— Twitter Support (@TwitterSupport) February 8, 2023
Report: Twitter has 180,000 US subscribers
According to The Information, only 180,000 people in the US have paid for a Twitter Blue subscription, 0.2% of the website’s monthly active users. The publication said it saw the information on a document that also revealed that 62% company’s paying users reside in the US, meaning Twitter has approximately 290,000 subscribers worldwide. Musk told Twitter employees last year that he wants half of the website’s revenue to come from subscriptions. One avenue the company is considering to earn more from its subscription services is to offer a higher-priced membership tier that allows users to browse the website with zero ads.
Musk denies Twitter use hurts Tesla, expects share price recovery
On an Earnings Call with investors [transcript], Musk rejects that his political influencing on Twitter is hurting Tesla’s brand.
Since Elon started political influencing, polls from Morning Consult & YouGov show Tesla brand favorability declining in 2022 and division along partisan lines. Such brand damage can impact demand. Does Tesla track favorability and how will any brand damage be mitigated?
Musk replies by citing his own popularity on Twitter:
Well, let me check my Twitter account (pause as he appears to actually pull out his phone). So I got 127 million followers and it continues to grow rapidly. That suggests that I’m reasonably popular. Now I might not be popular with some people, but for the vast majority of people, my follower count speaks for itself. I have the most interacted social account maybe in the world – certainly on Twitter.
And then talking about his impact on the brand:
I think Twitter is actually an incredibly powerful tool for driving demand for Tesla…I would really encourage companies out there of all kinds, automotive or otherwise, to make more use of Twitter and to use their Twitter accounts in ways that are interesting and informative, entertaining, and it will help them drive sales just as it has with Tesla.
Musk says he expects Tesla’s share price to recover over the long-term, though warned that he anticipated a “pretty difficult recession” in 2023 which could lead to setbacks.
We think demand will be good despite, probably, a contraction in the automotive market as a whole…There’s going to be bumps along the way and we’ll probably have a pretty difficult recession this year, probably. I hope not, but probably.
The Twitter Files 11: How Twitter Let the Intelligence Community In
Musk, through Taibbi, releases The Twitter Files: How Twitter Let the Intelligence Community In, which further details Twitter’s relationship with Intellignce angencies, such as the FBI.
1.THREAD: The Twitter Files
How Twitter Let the Intelligence Community In— Matt Taibbi (@mtaibbi) January 3, 2023
Taibbi says that in August 2017, when Facebook decided to suspend 300 accounts with “suspected Russian origin”, that Twitter’s leaders were sure they didn’t have a Russia problem, noting that while Facebook had issues with “hundreds of accounts”, Twitter only had issues with around 25. The company’s PR strategy was to deflect to Facebook’s problems. Public Policy VP Colin Crowell:
Twitter is not the focus of inquiry into Russian election meddling right now – the spotlight is on FB
In September 2017, after a manual examination, Twitter informed the senate it suspended 22 possibel Russian accoutns and 179 others with “possible links” to those. Senator Mark Warner of Virginia – ranking Democrat on the Intelligence Committee – held an immediate press conference to denounce Twitter’s report as “frankly inadequate on every level.”
After meeting with congressional leaders, Crowell wrote:
Warner has political incentive to keep this issue at top of the news, maintain pressure on us and rest of industry to keep producing material for them.
Cromwell also said that Democracts were taking cues from Hillary Clinton, who that week said:
It’s time for Twitter to stop dragging its heels and live up to the fact that its platform is being used as a tool for cyber-warfare.
Twitter formed a “Russia Task Force” to proactively self-investigate. Bu despite forming a “Russia Taks fForce”, which worked with data shared form Facebook, investigatinge accounts supposedly tied to Russia’s Internet Research Agency (IRA), the research came to nothing.
Oct 13, 2017: No evidence of a coordinated approach, all of the accounts found seem to be lone-wolf type activity (different timing, spend, targeting, <$10k in ad spend).
Oct 14, 2017: First round of RU investigation… 15 high risk accounts, 3 of which have connections with Russia, although 2 are RT.
Oct 20. 2017: Built new version of the model that is lower precision but higher recall which allows to catch more items. We aren’t seeing substantially more suspicious accounts. We expect to find ~20 with a small amount of spend.
Oct 23, 2017: Finished with investigation… 2500 full manual account reviews, we think this is exhaustive… 32 suspicious accounts and only 17 of those are connected with Russia, only 2 of those have significant spend one of which is Russia Today…remaining <$10k in spend.
According to Taibbi, the Taks Force’s failure deepened the company’s PR crisis: Following Warner’s press conference, stories sourced to the Intel Committee “poured” into the news, inlcuding a story Politico that said “Twitter deleted data potentially crucial to Russia probes.” Johns Hopkins Professor (and Intel Committee “expert”) Thomas Rid:
Were Twitter a contractor for the FSB… they could not have built a more effective disinformation platform.
In Washington weeks after the first briefing, Twitter leaders were told by Senate staff that “Sen Warner feels like tech industry was in denial for months.” Added an Intel staffer said there was “Big interest in Politico article about deleted accounts.”
As this pressure rose, Taibbi says the company changed its tune and Twitter “pledged to work with them on their desire to legislate”. However, even as Twitter prepared to change its ads policy and remove RT and Sputnik to placate Washington, congress turned the heat up more, apparently leaking the larger, base list of 2700 accounts.
Reporters started to call Twitter about Russia links. Buzzfeed, working with the University of Sheffield, claimed to find a “new network” on Twitter that had “close connections to… Russian-linked bot accounts.” but the company internally did not want to endorse the Buzzfeed/Sheffield findings, saying “it will only embolden them”. Twitter apologised to the for the same accounts they’d initially told the Senate were not a problem.
Taibbi says this This cycle – threatened legislation, wedded to scare headlines pushed by congressional/intel sources, followed by Twitter caving to moderation asks – would later be formalized in partnerships with federal law enforcement. The company settled on it’s prosture: In public, it removed content “at our sole discretion.” Privately, they would “off-board” anything “identified by the U.S. intelligence community as a state-sponsored entity conducting cyber-operations.” Crowell, in an email to the company’s leaders:
We will not be reverting to the status quo.
The Twitter Files: Part 7 – The FBI & the Hunter Biden Laptop
Musk, through Schellenberger, releases The Twitter Files 7: The FBI & the Hunter Biden Laptop. The documents aim to show that the FBI and the intelligence community (IC) discredited factual information about Hunter Biden’s foreign business dealings both before and after The New York Post revealed the contents of his laptop on October 14, 2020.
1. TWITTER FILES: PART 7
The FBI & the Hunter Biden Laptop
How the FBI & intelligence community discredited factual information about Hunter Biden’s foreign business dealings both after and *before* The New York Post revealed the contents of his laptop on October 14, 2020
— Michael Shellenberger (@shellenberger) December 19, 2022
Schellenberger recaps that Biden’s laptop was confiscated by the FBI on Dec 20, 2019, after the agency was alerted by JP Isaac, the owner of Delaware computer store, where Biden had left the laptop for repairs. Even though Isaac had discovered evidence of criminal activity, the FBI had still not contacted him by Aug 2020, so he contacted Rudy Giuliani, who is under FBI surveillance. In early October, Giuliani gives the information to the Post.
At 7pm. October 13, after learning that the Post will publish the story, Biden’s lawyer contacts Isaac. At 9.22pm, FBI Special Agent Elvis Chan sends ten documents to Yoel Roth, Head of Trust & Security at Twitter, through Teleporter, a secure, one-way communications channel from the FBI to Twitter.
The Post’s story is published on October 14. Despite it being factually correct, within hours, Twitter and other social media companies censor the Post’s article, preventing it from spreading and, more importantly, undermining its credibility in the minds of many Americans.
Schellenberger says that during 2020 the FBI and other law enforcement agencies repeatedly primed Roth to dismiss reports of Biden’s laptop as a Russian “hack and leak” operation. They also approached Facebook. Shellenberger shows documents where Chan says there was no new intelligence to support this conclusion. Twitter staff also noted that there was little Russian activity on the site.
[W]e haven’t yet identified activity that we’d typically refer to you (or even flag as interesting in the foreign influence context).
On several ocassions Roth pushed back on the FBI’s claims, and resisted FBI efforts to get Twitter to share data outside the normal search warant process. In July 2020, Chan arranges for temporary Top Secret security clearances for Twitter executives so that the FBI can share information about threats to the upcoming elections. On August 11, 2020, Chan shares information with Roth relating to the Russian hacking organization, APT28, through Teleporter.
Schellenberger notes that there were so many ex-FBI staff at Twitter that they had their own Slack channel. High-profile hires included Jim Baker (Head Counsel), who played a central role in making the case internally for an investigation of Donald Trump, and Dawn Burton (Director of Strategy), the former dep. chief of staff to FBI head James Comey, who initiated the investigation of Trump.
In Sept 2020, Roth participated in an Aspen Institute “tabletop exercise” on a potential “Hack-and-Dump” operation relating to Hunter Biden. Schellenberger says the goal was to shape how the media covered it — and how social media carried it
By mid-Sept, 2020, Chan & Roth had set up an encrypted messaging network so employees from FBI & Twitter could communicate. They also agree to create a “virtual war room” for “all the [Internet] industry plus FBI and ODNI” [Office of the Director of National Intelligence].
On Sept 15, 2020 the FBI’s Laura Dehmlow, who heads up the Foreign Influence Task Force, and Chan, request to give a classified briefing for Baker, without any other Twitter staff, such as Roth, present.
On Oct 14, shortly after The Post publishes the laptop story, Roth says:
It isn’t clearly violative of our Hacked Materials Policy, nor is it clearly in violation of anything else…My personal view on this, unsubstantiated by hard evidence as yet, is that this feels a lot like a somewhat subtle leak operation.
The same day and the next, in response to Roth, Baker repeatedly insists that the Biden materials were either faked, hacked, or both, and a violation of Twitter policy. Schellenberger:
It’s inconceivable Baker believed the Hunter Biden emails were either fake or hacked. The Post had included a picture of the receipt signed by Hunter Biden, and an FBI subpoena showed that the agency had taken possession of the laptop in December 2019.
By 10am, Oct 15, Roth accepts the hacking story:
The suggestion from experts – which rings true – is there was a hack that happened separately, and they loaded the hacked materials on the laptop that magically appeared at a repair shop in Delaware (and was coincidentally reviewed in a very invasive way by someone who coincidentally then handed the materials to Rudy Giuliani). Given the severe risks we saw in this space in 2016, we’re recommending a warning + deamplification pending further information.
In Dec. 2020, Baker and his colleagues sent a note of thanks to the FBI for its work.
Schellenberger notes that the FBI’s influence campaign may have been helped by the fact that it paid Twitter over $3 million for its staff time from Oct 2019.