“Elon Musk to temporarily run Twitter after $44 billion takeover”



Elon Musk is set to become temporary CEO of Twitter after its $44 billion takeover of the social media company closes, a person familiar with the matter said on Thursday, as the billionaire moves closer to securing funding for the ‘deal.
Musk, the world’s richest man, is also the CEO of Tesla Inc and runs two other companies, The Boring Company and SpaceX.
Tesla shares fell 8% on Thursday as investors feared Musk’s involvement with Twitter could steer him away from running the world’s most valuable electric car maker.
Twitter shares, on the other hand, extended gains and rose about 4% to $50.89, closer to the trade price of $54.20, as investors bet the new funding made the deal close. transaction more likely.
Parag Agrawal, who was named CEO of Twitter in November, is expected to remain in the role until the company’s sale to Musk is finalized. CNBC announced for the first time on Thursday that Musk plans to become interim CEO of Twitter.
Earlier Thursday, Musk listed a group of high-profile investors who are willing to provide $7.14 billion in funding for his Twitter offering, including Oracle co-founder Larry Ellison and Sequoia Capital.
Saudi investor Prince Alwaleed bin Talal, who last month said the deal price was not enough to allow him to sell his shares, has agreed to transfer his $1.89 billion stake in the transaction, according to a regulatory filing.
“Great to connect with you, my ‘new’ friend @elonmusk…Kingdom Holding Company and I can’t wait to launch our ~$1.9 billion on ‘new’ Twitter,” Alwaleed said in a tweet.
Musk increased his funding commitment to $27.25 billion, while cutting a margin loan from Morgan Stanley to $6.25 billion. It has already secured commitments for $13 billion in loans against Twitter from banks.
Other investors include crypto firm Binance, the company of New York-based real estate magnate Steven Witkoff and DFJ Growth IV Partners, which has investments in Boring Company, SpaceX, SolarCity and Tesla.
“We hope we can play a role in bringing social media and Web3 closer together and expanding the use and adoption of crypto and blockchain technology,” said Binance CEO Changpeng Zhao.
Reuters reported on Monday that Musk was in talks with major investment firms and wealthy individuals to secure more funding for his Twitter acquisition and tie up less of his wealth in the deal.
Musk will continue discussions with existing Twitter shareholders, including the company’s former chief Jack Dorsey, to contribute shares to the proposed acquisition, according to the filing.
Larry Ellison, a Tesla board member and self-proclaimed close friend of Musk, has committed $1 billion for the funding.
Musk, a self-proclaimed free speech absolutist who has advocated user-friendly tweaks to Twitter such as an edit button and defeating “spam bots” that send overwhelming amounts of unwanted tweets, has previously said that he would try to keep as many investors in Twitter as possible.
Investors wonder if Musk will complete the Twitter deal.
In April, he decided at the last minute not to serve on Twitter’s board. In 2018, Musk tweeted that there was “secured funding” for a $72 billion deal to take Tesla private, but didn’t offer a bid.
Musk would have to pay Twitter a $1 billion termination fee if he walks away, and the social media company could also sue him to complete the deal.


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