Recent reports state that Tesla CEO Elon Musk is expected to serve as temporary CEO of Twitter following his $44 billion takeover of the social media firm.
CNBC reports that Tesla CEO Elon Musk is expected to serve as the temporary CEO of Twitter for at least a few months following his $44 billion acquisition of the social media company. The information comes from sources close to Musk who believe that he will helm the company for some time after taking it private. This would mean Musk’s attention would be distracted to some degree from his primary companies, Tesla and SpaceX, and his other ventures such as The Boring Company and Neuralink.
Breitbart News reported this week that according to a recent regulatory filing, Musk has received letters committing approximately $7.14 billion from 19 investors, including Sequoia Capital, Oracle Corp. co-founder Larry Ellison and VyCapital.
Musk noted in the filing that as a result of the new financing, the $12.5 billion margin loan he had received to purchase Twitter would be reduced to $6.25 billion and the takeover will be financed by $27.27 billion in equity and cash. Commitments reportedly range from $1 billion from Oracle co-founder Larry Ellison to $5 million from Honeycomb Asset Management.
Twitter is currently helmed by CEO Parag Agrawal who only accepted the position months ago, taking over from Twitter co-founder Jack Dorsey in November. Agrawal told employees last month that the future of the company was uncertain under Musk, stating: “Once the deal closes, we don’t know which direction the platform will go.”
Musk has reportedly given presentations to investors in which he gave new financial projections based on his analysis of the company. Musk reportedly said that he feels Twitter’s EBITDA margin was too low and the company has “too many engineers not doing enough.” Musk further pledged to make the company a “magnet for talent.”
Following the news of Musk’s new round of investments, Twitter shares climbed by as much as three percent, while Tesla stock slid over four percent.
Read more at CNBC here.