Tech

Elon Musk to become temporary Twitter CEO after takeover

Elon Musk is expected to become interim CEO of Twitter after completing his US$44 billion (about Rs.3.37,465 billion) acquisition of the social media company, a person familiar with the matter said on Thursday as the billionaire nears raising funds to complete the deal.

Musk, the richest man in the world, is also the CEO of Tesla and runs two other companies, The Boring Company and SpaceX.

Tesla shares fell over 8 percent on Thursday as investors worried Musk’s involvement in Twitter could distract him from running the world’s most valuable electric carmaker.

Twitter shares, on the other hand, extended gains, rising about 4 percent to $50.89, closer to the deal price of $54.20 (about Rs.4,150), as investors bet the new funding made the deal more likely to close made.

Parag Agrawal, who was named CEO of Twitter in November, is expected to remain in the role until the company’s sale to Musk is completed. CNBC first reported on Thursday that Musk plans to become interim CEO of Twitter.

Earlier Thursday, Musk listed a group of high-profile investors willing to pledge $7.14 billion (around Rs. 54,485 billion) in funding for his Twitter offering, including Oracle co-founder Larry Ellison and Sequoia Capital.

Saudi Arabian investor Prince Alwaleed bin Talal, who said last month the transaction price was not enough for him to sell his shares, said Musk is an “excellent leader” for Twitter and agreed to raise his 1.89 Billions of dollars (roughly Rs. 14,493 crore) roll stake in the deal.

“Great to get in touch with you my ‘new’ friend @elonmusk…Kingdom Holding Company and I look forward to sharing our approximately $1.9 billion on the ‘new’ Twitter,” Alwaleed said in a tweet .

Musk increased funding commitments to US$27.25 billion (about Rs.2,08,981 crore), including commitments from 19 investors, while increasing a margin loan from Morgan Stanley to US$6.25 billion (about Rs.47,931 crore). . rupees) reduced. He has already received US$13 billion (around Rs.99,697 crore) in loan commitments.

Other investors include crypto firm Binance, the firm of New York-based real estate magnate Steven Witkoff, and DFJ Growth IV Partners, which has investments in Boring Company, SpaceX, SolarCity, and Tesla.

“We hope to play a role in bringing social media and Web3 together and expanding the use and adoption of crypto and blockchain technology,” said Changpeng Zhao, CEO of Binance.

Reuters reported Monday that Musk is in talks with big investment firms and wealthy individuals to provide more funding for his Twitter acquisition and tie less of his wealth into the deal.

According to a regulatory filing, Musk will continue in talks with existing Twitter shareholders, including the company’s former CEO Jack Dorsey, to contribute shares to the proposed acquisition.

Larry Ellison, a Tesla board member and a self-proclaimed close friend of Musk’s, has pledged $1 billion (around Rs. 7,667 billion) for the funding.

Musk, a self-proclaimed free speech absolutist who has championed user-friendly improvements to Twitter, such as: B. has previously said he would try to keep as many investors on Twitter as possible.

Investors have worried about whether Musk will close the Twitter deal.

In April, he made a last-minute decision not to take a seat on the Twitter board. In 2018, Musk tweeted that for a $72 billion deal (approx.

Musk would have to pay Twitter a $1 billion termination fee.

© Thomson Reuters 2022


https://gadgets360.com/social-networking/news/elon-musk-twitter-ceo-temporary-usd-44-billion-takeover-2950556 Elon Musk to become temporary Twitter CEO after takeover

Ryan Sederquist

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