landmark legislation called the Digital Services Act, which requires social media platforms like Twitter to more aggressively police their services for hate speech, misinformation and illicit content.

The new law will require Twitter and other social media companies with more than 45 million users in the European Union to conduct annual risk assessments about the spread of harmful content on their platforms and outline plans to combat the problem. If they are not seen as doing enough, the companies can be fined up to 6 percent of their global revenue, or even be banned from the European Union for repeat offenses.

Inside Twitter, frustrations have mounted over Mr. Musk’s moderation plans, and some employees have wondered if he would really halt their work during such a critical moment, when they are set to begin moderating tweets about elections in Brazil and another national election in the United States.

Adam Satariano contributed reporting.

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Twitter Counters Elon Musk’s Takeover Bid With a Poison Pill

Poison pills have been around for decades. The lawyer Martin Lipton, a founding partner of Wachtell, Lipton, Rosen & Katz, invented the maneuver, also called a shareholder rights plan, in 1982. It was a way to shore up a company’s defenses against unwanted takeovers by so-called corporate raiders like Carl Icahn and T. Boone Pickens.

They have since become a part of the corporate tool kit in America. Netflix adopted a poison pill in 2012 to stop Mr. Icahn from buying up its shares. Papa John’s used one against the pizza chain’s founder and chairman, John Schnatter, in 2018.

Investors rarely try to get around a poison pill by buying shares beyond the threshold set by the company, according to securities experts. One said it would be “financially ruinous,” even for Mr. Musk.

But Mr. Musk, who is worth more than $250 billion and is the chief executive of Tesla and SpaceX, rarely abides by precedent. He announced his intention to acquire Twitter on Thursday, making public an unsolicited bid worth more than $40 billion. In an interview at a TED conference later that day, he took issue with Twitter’s moderation policies, which govern the content shared on the platform.

Twitter is the “de facto town square,” Mr. Musk said, adding that “it’s really important that people have the reality and the perception that they are able to speak freely within the bounds of the law.” Twitter currently bans many types of content, including spam, threats of violence, the sharing of private information and coordinated disinformation campaigns.

Mr. Musk argued that taking Twitter private would allow more free speech to flow on the platform. “My strong intuitive sense is that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization,” he said during the TED interview. He also insisted that the algorithm Twitter uses to rank its content, deciding what hundreds of millions of users see on the service every day, should be public for users to audit.

Mr. Musk’s concerns are shared by many executives at Twitter, who have also pressed for more transparency about its algorithms. The company has published internal research about bias in its algorithms and funded an effort to create an open, transparent standard for social media services.

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Twitter Grapples With an Elon Musk Problem

SAN FRANCISCO — Bright and early on Monday, Elon Musk sent the government a surprising new document.

In it, the world’s wealthiest man laid out his possible intentions toward Twitter, in which he has amassed a 9.2 percent stake, underlining how drastically his position had changed from a week ago.

Mr. Musk could, if he chose, buy more shares of Twitter and increase his ownership of the company, according to the document, which was filed with the Securities and Exchange Commission. He could freely express his views about Twitter on social media or other channels, the document noted. And he reserved the right to “change his plans at any time, as he deems appropriate.”

It was a promise — or perhaps it was a threat. Either way, the filing encapsulated the treacherous situation that Twitter now finds itself in. Mr. Musk, 50, Twitter’s largest shareholder and one of its highest-profile users, could very well use the social media platform against itself and even buy enough shares to take over the company.

“Twitter has always suffered more than its fair share of dysfunction,” said Jason Goldman, who was on Twitter’s founding team and served on its board of directors in the past. “But at least we weren’t being actively trolled by prospective board members using the product we created.”

Twitter’s 11-person board and agreed to not own more than 14.9 percent of the company or take it over. Then on Sunday, Twitter abruptly said all of those bets were off and that Mr. Musk would not become a director.

What exactly went on between Mr. Musk, who has more than 81 million followers on Twitter, and the company’s executives and board members is unclear. But it leaves Twitter — which has survived founder infighting, boardroom revolts and outside shareholder ire — with an activist investor unlike any other.

Mr. Musk, who also leads the electric carmaker Tesla and the rocket company SpaceX, is known for being unpredictable and outspoken, often using Twitter to criticize, insult and troll others. By no longer joining the board, he liberated himself from corporate governance rules that would have required him to act in the best interests of the company and its shareholders.

Mr. Musk leaned into that freedom after his decision was communicated to the company on Saturday morning. He proclaimed on Twitter that he was in “goblin mode” and suggested changes such as removing the “w” from the company’s name to make it more vulgar and opening its San Francisco headquarters to shelter the homeless. He later deleted some of the posts.

“This is not typical activism or, frankly, anything like activism that we’ve seen before,” said Ele Klein, co-chair of the global Shareholder Activism Group at the law firm Schulte Roth & Zabel. “Elon Musk doesn’t do things that people have seen before.”

a post on Sunday. Twitter, which published a biography of Mr. Musk as a member of its board that was still visible late Sunday, declined to comment on Monday.

Credit…via Twitter

Mr. Musk has long shown significant disrespect for corporate governance rules. In 2018, he faced securities fraud charges after inaccurately tweeting that he had secured funding to take Tesla private. Mr. Musk later agreed to pay a $20 million fine to the S.E.C. and step aside as Tesla chairman for three years.

He also agreed to allow Tesla to review his public statements about the company. But in 2019, the S.E.C. asked a judge to hold him in contempt for violating the settlement terms by continuing to errantly tweet about Tesla.

Inside Twitter on Monday, employees were dismayed and concerned by Mr. Musk’s antics, according to half a dozen current and former workers, who were not authorized to speak publicly. After the billionaire suggested over the weekend that Twitter convert its headquarters into a homeless shelter because “no one shows up anyway,” employees questioned how Mr. Musk would know that given that he hadn’t visited the building in some time. They also pointed out that Mr. Musk, whose net worth has been pegged at more than $270 billion, could easily afford to help San Francisco’s homeless himself.

Elliott Management accumulated a 4 percent stake and used its position to press for changes, including an ouster of Jack Dorsey as chief executive and more aggressive financial growth. Mr. Dorsey stepped down in November.

Elliott’s approach followed the typical formula for activist investors: Acquire a significant stake in a company and then press for governance and strategy changes to drive up the stock price.

“Normally an activist is very clear in their intentions,” said Rich Greenfield, an analyst at LightShed Ventures, a venture capital investment fund. But “we don’t know what Elon Musk’s true motivation is. Is this Elon having fun? Is this Elon trying to effect change? Is this Elon trying to drive the stock higher?”

Twitter is particularly susceptible to activists, analysts said, because its founders did not structure the company’s shares in a way that gave themselves more control. The founders of Google and Facebook have maintained voting power over the shares, providing them with an outsize grip over the direction of their companies.

Natasha Lamb, a managing partner at Arjuna Capital, an activist investment firm that owns some Twitter stock, said Mr. Musk was taking a more casual approach than other activist investors.

“Musk is using Twitter to have his opinions heard, but it’s not a core activity,” she said. “It appears to be what he does for fun.”

What is fun for Mr. Musk may turn out to be less so for Twitter. The relief among Twitter employees that he was no longer joining the board was short-lived, the current and former employees said, when they realized that he was no longer bound by an agreement to not buy more stock or take over the company.

Mr. Musk could continue toying with Twitter, the current and former employees said they had realized. Several added that they were afraid of what might come next.

Lauren Hirsch contributed reporting.

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Twitter Wants to Reinvent Itself, by Merging the Old With the New

The Bluesky project would eventually allow for the creation of new curation algorithms, which would show different tweets at the top of users’ timelines than Twitter’s own algorithm. It would give users more choice about the kinds of content they saw, Mr. Dorsey said, and could allow Twitter to interoperate with other social media services.

Bluesky grabbed the attention of many technologists who were already working on decentralization. Soon small groups of them were meeting with Mr. Agrawal and Mr. Dorsey on Sundays to discuss the project, according to two participants who spoke on the condition of anonymity to discuss the private meetings, while others traded ideas in an online chat room.

Some Bluesky participants proposed a single app that piped in all their social media feeds. Others wanted custom algorithms that could, for instance, block them from seeing spoilers about their favorite TV show. And some were focused on making their online identities portable, so that an account could be moved between social media companies the way a phone number can be moved from AT&T to Verizon.

“One of the things that Bluesky would offer is curation and filtering experiences that are independent of those offered by the social media proprietorships,” said Tim Bray, an internet software pioneer and a former vice president at Amazon who participated in some of the discussions.

Jay Graber, a cryptocurrency developer, was selected in August to lead the Bluesky organization. And in February, Ms. Graber announced that the project had officially registered as a public benefit corporation and was building a prototype.

The project caught the attention of engineers at Reddit, who had preliminary discussions with Twitter engineers about how their sites might someday interoperate, two people familiar with the conversations said, but the companies have not formally agreed to any plans to work together.

Some skeptics believe Twitter is jumping on the web3 bandwagon, joining a trendy movement in tech to shift many services, including social media, to so-called blockchain technology. But executives say that Twitter is catering to what an overwhelming number of users want, while following the decentralization mandate laid out by Mr. Dorsey before he departed as C.E.O. in November.

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How the Copycats Came for Clubhouse

“More people getting into social audio is good for social audio,” Maya Watson, Clubhouse’s head of global marketing, said in an interview. “We’re not bothered by it, and, if anything, it makes us feel confident in where we’re going.”

At the start of the year, Clubhouse was booming. In February, the app was downloaded 9.6 million times, Sensor Tower said. A spokeswoman for Clubhouse disputed the accuracy of Sensor Tower’s metrics, which estimate user behavior, but said the company would not provide internal figures.

The app caught the attention of audio creators like Brian McCullough, who hosts a podcast for the news aggregator Techmeme, called “Techmeme Ride Home.” “I remember having conversations that were the best social media has been in 10 years,” Mr. McCullough said of his early days on Clubhouse.

Through the app, he connected with Chris Messina, who leads West Coast business development for Republic, a platform that allows companies to raise capital and unaccredited investors to invest in start-ups. Mr. Messina made a habit of recording snippets of Mr. McCullough’s show and playing them in Clubhouse so he could respond to them, and the pair decided to start making the podcast together.

But in March, Clubhouse experienced a slump as downloads slipped to 2.7 million, and in April the app was downloaded just 917,000 times, Sensor Tower said.

At the same time, Twitter was aggressively expanding Spaces. It began testing the feature in October 2020 and granted access to a broader swath of users in the spring. At the time, the development of Spaces was the top consumer product priority at the company, said a person familiar with the company’s plans who was not permitted to speak publicly about them.

That work appeared to pay off. By May, Spaces had more than one million users, that person said. The Washington Post previously reported the figure.

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