Elon Musk does not want to let off 75% of Twitter’s employees when he takes over the microblogging platform, the tech billionaire and soon-to-be CEO told employees on Wednesday. The billionaire is still likely to lay off employees as part of the buyout, prompting concern among employees because he has already spoken about reducing Twitter’s personnel.
According to the article, Musk, whose $44 billion Twitter takeover is expected to conclude by Friday, rejected the previously reported estimate in an address to employees at the company’s San Francisco headquarters. Musk is seen in the video lugging the sink and claiming that he was attempting to sink in. Earlier, Twitter’s Chief Marketing Officer, Leslie Berland, reportedly told colleagues in an email that Musk intends to visit the San Francisco office before the deal’s deadline.
The agreement to acquire Twitter has been the culmination of a series of dramatic events since the billionaire revealed his intention to acquire the microblogging site in April. However, in July, Tesla’s CEO terminated the agreement, accusing Twitter’s leadership of breaching the purchase agreement by exaggerating the quantity of spam and phony bot accounts.
The banks who agreed to fund Musk’s takeover of Twitter have concluded the final debt financing deal and are signing the necessary documents. According to one article, Musk promised to conclude the purchase during a video conference call with bankers who are helping fund the transaction on Monday. The banks supplying $13 billion in financing for the purchase have abandoned plans to sell the debt to investors due to uncertainty surrounding Twitter’s fortunes and losses. This move is the strongest indication yet that Musk intends to meet a deadline set by a Delaware court judge to finalize the acquisition by Friday.
Twitter has yet to respond to this. Musk’s lawyers did not reply quickly to demands for comment.
Elon Musk, the CEO of Tesla Inc. (TSLA) and the private space enterprise SpaceX, has acquired global recognition as an entrepreneur. Musk co-founded six businesses, including Tesla, SpaceX, and Thevalued at Boring Company, a tunneling venture. Musk has also co-founded PayPal (PYPL), was an early investor in several tech companies, and initiated talks in April 2022 to take Twitter Inc. (TWTR) private.
He owns approximately 25% of Tesla through stock and options but has pledged more than half of his stock as collateral for loans. After a funding round in May 2022, SpaceX is valued at $127 billion, having tripled its value in three years. Boring Company, which seeks to eliminate traffic, raised $675 million in April 2022 at a valuation of $5.7 billion. After Musk declared a 9.1% ownership and threatened a hostile takeover, Twitter’s board agreed to sell the firm to Musk for $44 billion in April 2022.
His achievements and personality have drawn comparisons to other colorful tycoons in American histories, such as Steve Jobs, Howard Hughes, and Henry Ford. He was declared the world’s richest person, with a net worth of $220 billion as of June 2022.
Musk surpassed Amazon.com Inc. (AMZN) founder Jeff Bezos for the first time in 2021.
According to one report, Musk’s lawyers delivered the necessary paperwork for the finance pledge to equity investors such as Sequoia Capital, Binance, Qatar Investment Authority, and others on Tuesday.
The conclusion of the transaction would put an end to a lawsuit filed by Twitter, which, together with investors, now expects the transaction to be finalized on the original terms of $54.20 per share.
The NYSE closed at $53.35 per share on Wednesday. In extended trade, they were up roughly 1% at $53.90, slightly below Musk’s offer price.
Musk’s $44 billion proposal to take Twitter private has a Friday deadline, but the video he posted does not indicate that the acquisition is complete.
After Musk agreed to buy Twitter for $54.20 per share, the court gave both parties until October 28 to iron out the details. If both parties fail to agree on the terms, a trial will be held in November.
