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Musk floats paid Twitter verification, fires board

Billionaire Elon Musk is already floating major changes for Twitter 91Ƶ and faces major hurdles as he begins his first week as owner of the social-media platform .

Billionaire Elon Musk is already floating major changes for Twitter 91Ƶ and faces major hurdles as he begins his first week as .

Twitter91Ƶs new owner fired the company91Ƶs board of directors and made himself the board91Ƶs sole member, according to a company filing Monday with the Securities and Exchange Commission. Musk later said on Twitter that the new board setup is 91Ƶtemporary,91Ƶ but he didn91Ƶt provide any details.

He91Ƶs also testing the waters on asking users to pay for verification. A venture capitalist working with Musk tweeted a poll asking how much users would be willing to pay for the blue check mark that Twitter has historically used to verify higher-profile accounts so other users know it91Ƶs really them.

Musk, whose account is verified, replied, 91ƵInteresting.91Ƶ

Critics have derided the mark, often granted to celebrities, politicians, business leaders and journalists, as an elite status symbol.

But Twitter also uses the blue check mark to verify activists and people who suddenly find themselves in the news, as well as little-known journalists at small publications around the globe, as an extra tool to curb misinformation coming from accounts that are impersonating people.

91ƵThe whole verification process is being revamped right now,91Ƶ Musk tweeted Sunday in response to a user who asked for help getting verified.

On Friday, meanwhile, billionaire Saudi Prince Alwaleed bin Talal said he and his Kingdom Holding Company rolled over a combined $1.89 billion in existing Twitter shares, making them the company91Ƶs largest shareholder after Musk. The news raised concerns among some lawmakers, including Sen. Chris Murphy, a Democrat from Connecticut.

Murphy tweeted that he is requesting the Committee on Foreign Investment 91Ƶ which reviews acquisitions of U.S. businesses by foreign buyers 91Ƶ to investigate the national security implications of the kingdom91Ƶs investment in Twitter

91ƵWe should be concerned that the Saudis, who have a clear interest in repressing political speech and impacting U.S. politics, are now the second-largest owner of a major social media platform,91Ƶ Murphy tweeted. 91ƵThere is a clear national security issue at stake and CFIUS should do a review.91Ƶ

Having taken ownership of the social media service, Musk has invited a group of tech-world friends and investors to help guide the San Francisco-based company91Ƶs transformation, which is likely to include a shakeup of its staff. Musk last week .

There91Ƶs been uncertainty about if and when he could begin larger-scale layoffs.

91ƵI do think there will be a lot of layoffs,91Ƶ said Matthew Faulkner, an assistant finance professor at San Jose State University. Faulkner noted the need for cost-cutting after Musk bought Twitter for a premium and the platform91Ƶs longtime struggles trying to turn a profit. But Musk might also want as quickly as possible to weed out employees who don91Ƶt believe in his mission so that those who stay feel more secure.

91ƵYou don91Ƶt want to have frantically scared employees working for you,91Ƶ Faulkner said. 91ƵThat doesn91Ƶt motivate people.91Ƶ

Those who have revealed they are helping Musk include Sriram Krishnan, a partner at venture capital firm Andreessen Horowitz, which pledged back in the spring to chip in to Musk91Ƶs plan to buy the company and take it private.

Krishnan, who is also a former Twitter product executive, said in a tweet that it is 91Ƶa hugely important company and can have great impact on the world and Elon is the person to make it happen.91Ƶ

Jason Calacanis, the venture capitalist who tweeted the poll about whether users would pay for verification, said over the weekend he is 91Ƶhanging out at Twitter a bit and simply trying to be as helpful as possible during the transition.91Ƶ

Calacanis said the team already 91Ƶhas a very comprehensive plan to reduce the number of (and visibility of) on the platform.91Ƶ And in the Twitter poll, he asked if users would pay between $5 and $15 monthly to 91Ƶbe verified & get a blue check mark91Ƶ on Twitter. Twitter is currently free for most users because it depends on advertising for its revenue.

Musk agreed to buy Twitter for $44 billion in April but it wasn91Ƶt until Thursday evening that he finally closed the deal, after his attempts to back out of it led to a protracted legal fight with the company. Musk91Ƶs lawyers are now asking the Delaware Chancery Court to throw out the case, according to a court filing made public Monday. The two sides were supposed to go to trial in November if they didn91Ƶt close the deal by the end of last week.

Musk has made a number of pronouncements since early this year about how to fix Twitter, and it remains unclear which proposals he will prioritize.

He has promised to cut back some of Twitter91Ƶs content restrictions to promote free speech, but said Friday that no major decisions on content or reinstating of banned accounts will be made until a 91Ƶcontent moderation council91Ƶ with diverse viewpoints is put in place. He later qualified that remark, tweeting 91Ƶanyone suspended for minor & dubious reasons will be freed from Twitter jail.91Ƶ

The head of a cryptocurrency exchange that invested $500 million in Musk91Ƶs Twitter takeover said he had a number of reasons for supporting the deal, including the possibility Musk would transition Twitter into a company supporting cryptocurrency and the concept known as Web3, which many cryptocurrency enthusiasts envision as the next generation of the internet.

91ƵWe want to make sure that crypto has a seat at the table when it comes to free speech,91Ƶ Binance CEO Changpeng Zhao told CNBC on Monday. 91ƵAnd there are more tactical things, like we want to help bring Twitter into Web3 when they91Ƶre ready.91Ƶ

He said cryptocurrency could be useful for solving some of Musk91Ƶs immediate challenges, such as the plan to charge a premium membership fee for more users.

91ƵThat can be done very easily, globally, by using cryptocurrency as a means of payment,91Ƶ he said.

___

Associated Press Writer Randall Chase contributed to this story.

Matt O91Ƶbrien And Barbara Ortutay, The Associated Press

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