Musk Takes Over Twitter And Fires CEO—Here’s What It Could Mean
The world’s wealthiest man Elon Musk has lastly accomplished his $44 billion deal to take over Twitter, based on a number of experiences Thursday night, and shortly went to work rebuilding the corporate to his imaginative and prescient, firing executives like CEO Parag Agrawal—that is what could change on the platform, on the firm and for Musk and his different ventures.
Elon Musk’s buy of Twitter is full after six lengthy months.
Here are some key details
Executive oustersCNBC’s Thursday Night Report reported that Musk had proven a number of executives his first order of enterprise, together with Agrawal (CFO) Ned Segal.
Massive layoffs: According to interviews and paperwork obtained by The, Musk intends to fireside roughly 75% of Twitter workers if he turns into president. Washington Post final week, indicative of Musk’s often-hostile relationship with Twitter and sharp criticism of its content material moderation insurance policies, beforehand accusing its workers of getting a “strong left wing bias” (Musk reportedly informed Twitter workers Wednesday the 75% determine is inaccurate).
Altering Twitter’s person expertise: Musk has floated a number of adjustments to the location, together with charging a small payment, lowering the variety of pretend and spam accounts from the location, altering the content material algorithm to boost “free speech,” loosening its moderation guidelines and addingAll customers have an choice to edit.
Trump and Kanye could return Musk mentioned in May he plans to revive the Twitter account of former President Donald Trump, whom the platform banned in January 2021 “due to the risk of further incitement of violence” following the lethal Capitol riot, although Trump claims he wouldn’t rejoin and can as an alternative stay on his new Truth Social web site—Musk has additionally beforehand stood by Kanye West, calling the rapper his “friend”Twitter had already banned West in April for his threats of violence in opposition to Jews
Tesla continues to unload: Wedbush analyst Dan Ives estimated final week that Musk could have to promote one other $5 to $10 billion in Tesla inventory to finance the deal, including to the roughly $30 billion he’s already bought this 12 months, and shares of Tesla are down greater than 40% since April 4, when Musk disclosed his 9% stake in Twitter, largely resulting from considerations about Musk’s selloff and the social media agency pulling his consideration away from the electrical automobile agency.
X App: Musk has mentioned he could use his new $44 billion plaything to construct out what he calls his X “everything app,” a cell app which might carry collectively a wide range of unrelated providers like social media, messaging, meals supply and funds below the identical umbrella, within the mannequin of Tencent’s WeChat in China.
The Key Background
Musk and Twitter confronted a Friday deadline from the courts to finish the acquisition, or to face a trial which might have seen him compelled to purchase Twitter. Musk seemingly confirmed the deal would undergo Wednesday when he modified his Twitter bio to “Chief Twit” and shared a video of him on the firm’s headquarters, and the New York Stock Exchange suspended Twitter buying and selling for Friday in anticipation of the deal closing. Twitter accepted Musk’s unsolicited bid for the corporate in April, valuing the corporate at $54.20 per share, a few 30% premium. In July, Musk formally tried to again out of the deal, claiming the corporate knowingly misled him in regards to the presence of bots on the location, prompting Twitter to file a lawsuit in Delaware’s Chancery Court to power by way of the acquisition. Musk acknowledged to Twitter on October 3 that he’ll proceed with the settlement at its authentic phrases and keep away from the Delaware trial which was initially scheduled for October 17. A Bloomberg report final Thursday in regards to the Twitter deal dealing with a attainable nationwide safety evaluation resulting from Musk’s friendliness with Russia briefly spooked traders on the chance of the deal going by way of, although the White House denies any such evaluation is underway. Twitter and Musk haven’t but responded to this report. SME’ request for remark.
“The $44 billion price tag for Twitter will go down as one of the most overpaid tech acquisitions in the history of M&A deals,” Ives mentioned in a Thursday be aware to shoppers, estimating a $25 billion true market worth for Twitter.
The inventory of Twitter fell as little as $32 in the course of the summer time, as considerations about whether or not or not it might ever shut peaked. Investors who guess on the deal taking place make out as bandits. This contains billionaire Carl Icahn. Wall Street JournalReports stand to make as excessive as $250 Million after buying greater than 500 million Twitter shares for $35.
Musk’s estimated price is $221.5 trillion, which makes him the richest particular person on the planet by $62 million. Musk’s fortune has tumbled greater than $100 billion this 12 months as Tesla’s inventory crashes from its pandemic peak.