Elon Musk, CEO of Tesla, wants to spend about $44 billion to acquire twitter, which has attracted attention from all walks of life. It is expected that its reform ideas include changing the profit model to charging subscription, relaxing audit, cleaning up robot accounts, etc. these potential ideas have raised concerns about the prospects of Twitter in the industry, especially the possible regulatory upgrading measures in European and American countries.

For “Musk version” Twitter, the profit model may be significantly adjusted after the sky high price acquisition, and the revenue and performance prospects are unpredictable.

Twitter accepted Musk’s $54.20 per share offer, totalling about $44 billion. Despite spending a lot of money, musk advocates that Twitter may charge a small amount of fees to commercial and government users in the future, indicating the possibility of significant transformation of its business model. Twitter’s results show that 90% of its revenue comes from advertising. In the fourth quarter of 2021, the turnover reached US $1.57 billion and the advertising revenue was US $1.41 billion.

Musk’s advocate has changed the business model and performance of this enterprise, and the deep-seated challenges and risks are self-evident. In particular, twitter employees in many countries are facing the risk of job adjustment or even layoff, and the business partners who have worked closely together will also face reconstruction. Industry insiders said that in order to be responsible to the company and shareholders, musk obviously needs to strike a balance between ideal and reality in the future, but the executive who is bold, breaks through common sense and can tolerate unprofitable situation may itself become an uncertain factor for the stable development of twitter.

Musk’s acquisition could also lead to regulatory upgrades for twitter. Due to the huge amount of acquisition transactions, involving a large number of users and data, the regulatory authorities’ anti-monopoly investigation of musk will be a necessary action to prevent the imbalance of the industry competitive environment. According to Bloomberg, the US Federal Trade Commission (FTC) has begun to investigate the potential antitrust problems of the acquisition. According to the US M & a law, musk must inform the FTC and the Department of justice of the transaction and wait for at least 30 days to complete the transaction.

After Musk’s acquisition of twitter, external supervision is also expected to upgrade. Through Musk’s previous public remarks, the industry believes that he will relax the content audit of twitter platform. This idea is contrary to the general trend, because many governments are cracking down on the increasingly serious problems of false and sexual violence in online information.

EU internal market commissioner Thierry Breton recently cited the new EU digital services act to warn twitter that the company’s non-compliance could lead to its ban in Europe. “Anyone who wants to benefit from this market must abide by our rules. If it operates in Europe, the twitter board must fulfill its obligations. Otherwise, it will face heavy fines,” he said