Tesla CEO Elon Musk secured financing for his $44 billion takeover bid of Twitter by pledging to slash jobs and govt pay, amongst different cost-cutting measures, in line with a report.
Musk additionally advised lenders that he would maximize profitability on the social media platform by monetizing tweets, although he didn’t present specifics, and floated solutions on the right way to increase income together with a subscription service, according to Bloomberg News.
Musk needed to persuade the banks that Twitter produced sufficient money circulate to service the debt he sought, in line with the report. In the long run, he clinched $13 billion in loans secured in opposition to Twitter and a $12.5 billion margin mortgage tied to his Tesla inventory, Reuters reported.
He agreed to pay for the rest of the consideration together with his personal money.
Musk’s pitch to the banks constituted his imaginative and prescient moderately than agency commitments, the sources advised Reuters, and the precise price cuts he’ll pursue as soon as he owns Twitter stay unclear. The plan he outlined to banks was skinny on element, the sources added.
Musk has tweeted about eliminating the salaries of Twitter’s board administrators, which he stated might lead to about $3 million in price financial savings. Twitter’s stock-based compensation for the 12 months ending Dec. 31, 2021 was $630 million, a 33% improve from 2020, company filings present.
Musk’s $44 billion buyout provide was accepted by Twitter’s board of administrators final week. He agreed to accumulate the San Francisco-based firm at $54.20 a share.
However he has divulged few particulars on how he plans to run the corporate. Musk has vowed to change the positioning’s content material moderation coverage in order to permit for extra “free speech.”
The prospect of Musk assuming possession over Twitter has created a way of dread among the many agency’s staff, in line with stories.
Leaked internal communications reveal that employees on the firm, who’re horrified on the prospect of changes to the site’s speech policies, vented their anger and despair at the potential of Musk taking on.
“Bodily cringy watching Elon speak about free speech,” a website reliability engineer who identifies as a nonbinary transgender and plural particular person wrote.
We’re all going by means of the 5 phases of grief in cycles and everybody’s nerves are frazzled,” wrote a senior workers software program engineer who referred to as Musk an “a**gap,” and tried to console his colleagues.
“We’re all spinning our wheels, and developing with worst case situations (Trump returns! No extra moderation!). The very fact is that [Musk] has not talked about what he’s planning on doing in any element exterior of broad sweeping statements that might be simply seen as hyperbolic showboating.”
Main as much as Monday’s deal, Twitter staff had already been venting for weeks on Slack about Musk and defending the platform’s moderation enforcement.
The gross sales, made Tuesday and Wednesday, had been price a complete of $3.99 billion, Bloomberg reported.
After the filings had been made public Thursday, Musk tweeted “No additional TSLA gross sales deliberate after at present.”