Elon Musk’s ruthless firing spree at Twitter ​

Thursday - 27/10/2022 21:58
Tech billionaire Elon Musk has made a major statement after completing his takeover of Twitter - ending a lengthy tug-of-war with the social media firm’s board.

Elon Musk completed his A$68 billion Twitter takeover deal, firing the company’s CEO and financial chief and ending a lengthy tug-of-war with the social media firm’s board of directors just before a key deadline, according to a report.

Musk finally closed a deal to take the struggling social network late Thursday, ousting Chief Executive Parag Agrawal and Chief Financial Officer Ned Segal, according to the Wall Street Journal, which cited unnamed sources.

Mr Agrawal and Mr Segal were reportedly in the building when the deal closed and were “escorted from the building”.
 

Elon Musk. Picture: Alberto E. Rodriguez/Getty Images
Elon Musk. Picture: Alberto E. Rodriguez/Getty Images
 

The agreement between Musk’s legal team and Twitter’s board was reached less than a day before the 5pm Friday deadline imposed by Delaware Chancery Court Judge Kathaleen McCormick. Without a deal, Musk and Twitter would have clashed on opposite sides of a November trial.

Under the deal’s terms, Musk will buy Twitter at the originally-agreed price of A$84.00 per share. Musk has vowed to take the company private and reshape the platform with an emphasis on free speech.

Musk signalled throughout the week that he intended to finalise the takeover deal. The eccentric billionaire changed his Twitter bio to “Chief Twit” and posted a video of himself barging into Twitter’s San Francisco headquarters carrying a sink.

Musk’s involvement has renewed hand-wringing about Twitter employees who fear he will enact sweeping lay-offs and other cost-cutting measures while reshaping the company’s business.
 

Elon Musk has reportedly sacked top executives at Twitter. Picture: Odd Andersen
Elon Musk has reportedly sacked top executives at Twitter. Picture: Odd Andersen
 

The Tesla boss took steps to assure sceptics. During his office visit, Musk said he had no intention of slashing 75 per cent of Twitter’s workforce upon taking control, as the Washington Post had reported.

Musk also posted a lengthy message to Twitter’s advertisers, writing that he had no intention of turning the social media platform into a “free-for-all hellscape.” Critics had suggested that Musk’s aggressive stance on free speech would enable extremism voices to thrive on the platform.
 

 

“The reason I acquired Twitter is because it is important to the future of civilisation to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence,” Musk said.

Musk’s co-investors, including Oracle co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal, are contributing A$11 billion toward the deal. Banks including Morgan Stanley and Bank of America are covering A$20.3 billion I debt financing.


 

During Tesla’s earnings call earlier this month, Musk admitted that he was “obviously overpaying” to buy the firm, but added he felt the “long-term potential for Twitter is an order of magnitude greater than its current value.”

While Musk’s long-term plans for Twitter are still murky, the executive has called the company an “accelerant” for his goal of creating an “everything app” called X. The app is widely expected to mirror the Tencent-owned social media app WeChat, which offers a wide array of services ranging from payments to food delivery and ride-sharing.

Earlier this month, Musk said acquisition of Twitter “probably accelerates X by 3 to 5 years, but I could be wrong.”
 

Elon Musk is expected to cut costs after taking over Twitter. Picture: Amy Osborne
Elon Musk is expected to cut costs after taking over Twitter. Picture: Amy Osborne
 

The closed deal followed a months-long saga that began in April, when Musk disclosed that he had taken a sizeable stake in Twitter. By April, Twitter’s board had accepted Musk’s offer to buy the company for A$84.00 per share, or A$68 billion.

Musk later attempted to back out of the agreement, citing concerns about the number of spam bots within Twitter’s user base and accusing the company of withholding key information about the issue. In July, Twitter’s board sued Musk in Delaware Chancery Court an effort to enforce the original A$68 billion deal by court order. As the trial approached, Musk reversed course again and signalled that he would honour the original agreement.

This article originally appeared on The New York Post and was reproduced with permission.

Author: Editors Desk

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 Keywords: Twitter, Elon Musk

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