A source familiar with the matter told Reuters Thursday that Elon Musk is expected to become Twitter’s interim CEO after completing the company’s $ 44 billion acquisition of. social mediaas the billionaire is close to securing the necessary funding for the deal.
Musk, the richest man in the world, is also the CEO of Tesla and heads two other companies, The Boring Company and SpaceX.
Tesla shares fell 8% on Thursday as investors feared that Musk’s involvement in running Twitter might distract him from the producer’s management. auto most valuable electric in the world.
On the other hand, Twitter shares extended their earnings and rose roughly 4% to $ 50.89, closer to the $ 54.20 deal price, as investors bet the new funding has made the deal more likely.
Parag Agrawal, who was named Twitter CEO in November, is expected to remain in his role until the company’s sale to Musk is completed.
And CNBC reported, for the first time on Thursday, that Musk plans to become CEO of Twitter on a temporary basis.
Musk today listed a group of high-profile investors willing to provide $ 7.14 billion in funding for the deal on Twitter, including Oracle co-founder Larry Ellison and Sequoia Capital.
And Saudi investor Prince Alwaleed bin Talal, who last month said the deal price wasn’t enough to sell his shares, instead agreed to transfer his $ 1.89 billion stake in the deal.
Musk increased his funding commitment to $ 27.25 billion, reducing the margin loan from Morgan Stanley to $ 6.25 billion. He has already secured commitments of $ 13 billion in loans from banks.
Other investors include cryptocurrency firm Binance, New York real estate mogul Steven Witkoff, and DFJ Growth IV Partners, which has investments in The Boring Company, SpaceX, SolarCity and Tesla.
Musk will continue to hold talks with current Twitter shareholders, including former company boss Jack Dorsey, to help with the proposed acquisition, according to the filing.
Larry Ellison, Tesla board member and close friend of Musk, has pledged $ 1 billion in financing.
Musk will have to pay Twitter a $ 1 billion resolution fee if he retires and the company social media he can also sue him to complete the deal.
Read More About: Business News