In April 2023, Substack, a popular newsletter platform, received an unexpected proposal from Elon Musk, who had recently acquired Twitter. Musk expressed interest in buying Substack, aiming to bolster paid subscriptions on Twitter—now rebranded as X—a platform long known as a “global town square” for political discourse. Substack, whose business model is built around paid subscriptions, was central to his vision.

During a call with Substack’s CEO, Chris Best, Musk suggested merging the two companies and offered Best the role of CEO for the combined entity, according to three sources familiar with the conversation. However, Best declined the proposal, bringing the brief discussion to an end. Following this, Substack sharpened its focus on attracting politically engaged audiences away from social networks like X.

Each day, Substack hosts tens of thousands of newsletters covering a wide range of topics, from Bitcoin strategies to vintage fashion. However, politics remains the platform’s most valuable category in terms of both readership and revenue. Substack has positioned itself as a hub for thoughtful analysis and civil discourse, contrasting with the often chaotic environment of social media.

“There’s a clear need for a high-quality platform where genuine political discussions and debates can thrive without devolving into chaos,” said Hamish McKenzie, a co-founder of Substack, in an interview.

The platform has successfully drawn prominent creators whose work has both expanded Substack’s influence in election coverage and generated millions in subscription revenue. Notable publishers include polling expert Nate Silver, who saw a surge in subscribers even after doubling his prices, progressive broadcaster Mehdi Hasan, who climbed Substack’s charts after launching his own media venture, and The Bulwark, a center-right commentary collective.

Despite its successes, Substack has faced challenges. Silver’s election night predictions were marred by glitches, and the platform has been criticized for hosting newsletters affiliated with white nationalist content. Additionally, Substack remains unprofitable, raising questions about whether its political push can lead to financial sustainability.

Founded in San Francisco in 2017, Substack initially secured funding from major venture firms like Andreessen Horowitz and Y Combinator. In 2022, the company laid off 14% of its staff and scaled back on offering lucrative deals to writers, reflecting its financial struggles. Substack’s leadership maintains that while the company could prioritize profitability, it is instead focusing on growth.

Substack’s move into politics gained momentum in late 2023, partly in response to platforms like Meta reducing emphasis on political content. Catherine Valentine, a former CNN producer, was hired to build Substack’s profile in the political sphere, which for years had been dominated by Twitter.

Substack’s introduction of Notes, a feature resembling Twitter for shorter posts, escalated tensions with Musk. After Notes launched, X briefly suppressed Substack links, and Musk labeled Notes a “Twitter clone.” The rivalry continued, with McKenzie recently accusing Musk of being a propagandist with significant conflicts of interest.

While disputes simmer at the executive level, top Substack writers thrive. In politics and news, over 30 publishers earn $1 million or more annually. Notable successes include Silver’s Silver Bulletin, ranked third on Substack’s politics leaderboard, and The Bulwark, generating $6 million annually. Still, Substack’s revenue model—taking a 10% cut of publisher earnings—yields less revenue per user compared to legacy publications.

Substack’s emphasis on fostering productive discussions has also appealed to creators disillusioned with the toxic environments or restrictive policies of other platforms. However, the platform’s free speech policies have occasionally backfired, leading some prominent writers to leave.

Despite the controversies and financial hurdles, many Substack creators remain loyal. Silver, for instance, recently made a personal investment in the company, signaling his belief in its potential. “If you have a unique voice and a niche that resonates, Substack offers a path to meaningful success,” he said, adding, “Consistency is key—always be writing.”