According to CNBC, Elon Musk is expected to become interim CEO of Twitter in a few months after he completes his $44 billion acquisition.
A filing with the SEC on Thursday revealed that Musk has raised approximately $7.14 billion in pledged capital from friends and other investors to fund the purchase of Twitter. CNBC’s David Faber says that Musk carefully selects investors. The commitments came from the Oracle co-founder with $1 billion, $5 billion from Honeycomb Asset Management, which also invested in SpaceX. Faber also added that Twitter co-founder Jack Dorsey could also be on the list.
Twitter CEO Parag Agrawal has just led the company for a few months after taking over from former CEO Dorsey last November. So far, there hasn’t been much discussion about whether Musk’s deal will lead to a complete restructuring of the leadership. But last month, Reuters reported that Musk was looking for a new CEO for Twitter.
For his part, Agrawal told employees during a meeting last month that Twitter’s future is now uncertain in Musk’s hands.
“Once the deal is complete, we don’t know where the platform will go,” Agrawal said when asked if the company could allow former President Donald Trump to return to the platform when Musk acquires the platform. catch or not. Mr. Trump’s account has been blocked since last year.
Musk’s acquisition of Twitter comes at a pivotal time for the company. Agrawal has said that he will focus on growing Twitter’s daily user base and bringing new products to customers. In the company’s latest earnings report, Twitter said that it hit 229 million daily active users, up 15.9% year-over-year.
Musk is currently the CEO of Tesla and SpaceX. He recently gave a presentation to investors on Twitter’s financials. Musk says he feels Twitter’s earnings before interest, taxes, and amortization are too low. Musk also pledged to make the company a “talent for talent.”
Musk also floated the idea of cutting both costs and staffing at Twitter.
In online meetings with banks before the deal was announced, Musk raised questions about how effectively Twitter makes a profit. While the plan has yet to be agreed on and Musk himself is not allowed access to Twitter’s non-public financial documents at this time, he still mentioned the measure of job cuts, people familiar with the matter said. let me know. He did not detail which departments or positions might be affected.
In addition, Musk also talked about ideas for monetizing the platform and boosting cash flow, including offering a subscription service to drive recurring revenue. While he hasn’t revealed much about his plans to boost growth, he said earlier this month that he’s not concerned about money. At a TED event that took place after the takeover was announced: “I don’t care about money at all.”
Everyone on Twitter from employees to investors wants to know how Musk plans to run the company. Aside from the tweets they’ve shared, the world’s richest person hasn’t talked much about potential changes, and Twitter’s board hasn’t told investors yet, despite releasing its earnings report on Thursday.
In announcing the deal, Musk said that he wants to make Twitter “better than ever” by “improving the product with new features, increasing the reliability of algorithms, eliminating spambots, and authenticate the person in use”.