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Thursday, May 5, 2022

Elon Musk to take over as Twitter CEO after closing $44 billion deal

Mr Musk may take over as the temporary CEO of social media company Twitter once his $44 billion buyout deal is complete.

• May 5, 2022
Elon Musk
Elon Musk [Credit: NDTV]

Tesla CEO and SpaceX founder Elon Musk may take over as the temporary CEO of social media company Twitter once his $44 billion buyout deal is complete.

On Thursday, CNBC’s David Faber reported, citing sources familiar with the matter. 

An SEC filing showed that Mr Musk acquired a commitment of $7.14 billion in equity from investors to buy Twitter. Mr Musk secured $1 billion from Oracle co-founder Larry Ellison and $5 million from Honeycomb Asset Management, which invested in SpaceX. 

Saudi Prince Alwaleed bin Talal, a major Twitter investor who had initially rejected Mr Musk’s offer to buy the social media company in cash, Thursday wrote that Mr Musk would be “an excellent leader for Twitter” as it goes private.

“Great to connect with you my “new” friend @elonmusk I believe you will be an excellent leader for @Twitter to propel & maximise its great potential,” Mr bin Talal said in a tweet. “@Kingdom_KHC & I look forward to roll our ~$1.9bn in the “new” @Twitter and join you on this exciting journey.”

When the buyout closes, Mr Musk will be taking over from current CEO Parag Agrawal, who was appointed last November. Mr Agrawal is estimated to receive $42 million if his appointment is terminated within 12 months of a change in control at Twitter, according to research firm Equilar

Last week, Reuters reported that a replacement for Mr Agrawal was found. Though unnamed, Reuters said Mr Musk told Twitter’s chairman Bret Taylor that he did not have confidence in the company’s current management. 

Mr Musk had secured $46.5 billion for the takeover and proposed $54.20 per share, causing Twitter 11 board members to backtrack on their initial position to fight off the acquisition and re-examine the bid.

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