Elon Musk agreed to acquire Twitter for $44 billion on Monday, vowing a more liberal approach to content policing on the network. He promotes his interests, criticizes opponents, and offers his thoughts on social and economic concerns to over 83 million followers.
Tesla CEO Elon Musk, the world’s richest person, has said that he wants to acquire and privatize Twitter because he believes it is not living up to its promise as a free expression platform.
In a joint statement with Twitter, Elon Musk said he wanted to make the site “better than ever” with new features such as eliminating automated “spambots” and making its algorithms transparent to the public to improve confidence.
“Free speech is the foundation of a functional democracy, and Twitter is the digital town square where critical issues affecting humanity’s future are argued,” Elon Musk added. “I want to make Twitter better than it has ever been by adding new features, opening up the algorithms to boost trust, combating spam bots, and authenticating all people. Twitter has enormous potential, and I’m excited to work with the business and the Twitter community to realize it “, he went on.
The agreement was reached only two weeks after the billionaire announced he had a 9% share in the company. Elon Musk said that he had secured $46.5 billion in funding to purchase Twitter, increasing pressure on the board of directors to reach an agreement.
According to the company, Twitter’s board of directors unanimously authorized the deal. Twitter co-founder and former CEO Jack Dorsey, who had planned to stand down from the board in May, is one of the 11 members of the board. The purchase, according to Twitter, is likely to conclude this year and is subject to approval from Twitter investors and authorities.
On Monday, Twitter Inc.’s stock surged 6% to $52 per share. Elon Musk bid to acquire the social networking platform for $54.20 per share on April 14. While the price has risen significantly since Elon Musk’s offer, it remains much below its February 2021 high of $77 per share.
Deal Financing on Twitter
Twitter will be purchased for $54.20 per share in cash by a company controlled entirely by Elon Musk in a $44 billion deal. The Twitter board of directors unanimously authorized the agreement. The transaction is scheduled to conclude in 2022, pending approval by Twitter shareholders, regulatory approvals, and the fulfillment of other standard closing conditions.
Musk’s purchase of Twitter has become the third-largest tech deal in history. Last week, Tesla CEO Elon Musk detailed the $13 billion in bank funding received by the social media business and the $12.5 billion backed by a Tesla commitment. According to the deal, Musk would “provide an approximately $21 billion equity contribution.” There were no more specifics concerning the source of the funds. All eyes will be on him to see how he will handle the finances.
Parag Agrawal gets $42 million compensation if terminated as CEO.
According to a research firm, Equilar, if Twitter Inc CEO Parag Agrawal were fired within 12 months of a change in leadership in the social media business, he would get an estimated $42 million.
Elon Musk, the billionaire, agreed to acquire Twitter for $44 billion on Monday, ending the business’s stint as a public corporation, which began in 2013.
Musk expressed his dissatisfaction with Twitter’s management in a securities filing on April 14.
With Musk’s offering price of $54.20, in mind, per share and conditions in the company’s latest proxy statement, Equilar’s estimate includes a year’s worth of Agrawal’s basic pay plus accelerated vesting of all equity awards, according to an Equilar spokesman.
Equilar’s estimate was met with dead silence from a Twitter spokesperson.
In November, Agrawal, who had previously served as Twitter’s chief technical officer, was appointed CEO. According to Twitter’s proxy, his total remuneration for 2021 was $30.4 million, mostly in stock awards.
The company’s future, according to CEO Parag Agrawal, is questionable.
The destiny of Twitter’s workers is in jeopardy after Tesla CEO Elon Musk purchased the microblogging site for $44 billion. On Monday, Twitter CEO Parag Agrawal said that the company’s future is “uncertain.”
Parag Agrawal, speaking to employees immediately after Twitter revealed it had agreed to be purchased by Musk, said layoffs aren’t planned “.” Still, he didn’t say what would happen after the multibillion-dollar transaction was completed and the firm was in Musk’s hands.
“We don’t know everything,” Agrawal said. “We are in the midst of a moment of uncertainty.”
“We don’t know which route the platform will take after the sale is complete,” Agrawal said during a town hall-style gathering.
After the transaction is completed, Twitter will become a privately owned corporation, with the board of directors being disbanded, according to Twitter’s Independent Board Chair Bret Taylor.
“Twitter has a purpose and significance that influences the whole globe,” Parag Agrawal said earlier in a joint statement with Musk. We are proud of our staff and motivated by work that has never been more critical.”
What will Elon Musk strategy be with Twitter?
Musk has spoken freely about his aspirations to turn Twitter become the ideal free expression platform. “I invested in Twitter because I think in its potential to be the platform for free expression throughout the world. I believe free speech is a social requirement for a functioning democracy,” he explained why he bought the company. However, after making my investment, I’ve realized that the firm, in its present form, can neither prosper nor fulfill this social necessity. As a private firm, Twitter must be reformed. Consequently, I’m proposing to acquire Twitter in its whole,” he said. “
“I also want to make Twitter better than it has ever been by adding new features, opening up the algorithms to boost trust, combating spam bots, and authenticating all people.” According to a statement posted by Twitter, Musk stated, “Twitter has immense potential – I look forward to working with the business and the community of users to unlock it.”
Will There Be a Layoff for Twitter Employees?
Before the purchase concluded at the end of the year, Agrawal informed staff that there would be no significant changes. ‘At this time, there are no plans for any layoffs,’ the CEO announced to staff.
“Between now until closure, we’ll continue to make judgments as we have in the past, guided by our ideals.” “He said
“That doesn’t mean things won’t change; things have been changing…,” he continued, referring to the regime’s adjustments. I’ve been talking about how important it is to drive good change at the firm, and I’ll keep doing so because it makes us better and stronger. Different options may be made if the transaction is closed.”
How are Employees at Twitter paid?
Because Twitter will become a private company, Musk will have to devise a new compensation system for its staff. Employees will no longer have access to stock options. Will Tesla’s CEO provide stock options to his employees? Or is it possible that the social media giant may go public for the second time?