Billionaire will likely take over as platform’s CEO for a few months after completing takeover, CNBC says
Elon Musk is the chief executive at Tesla and SpaceX. He reportedly intends to manage Twitter for several months following his purchase of SpaceX ($44.5 billion).
CNBC reports that Musk, who will replace Parag Agrawal as CEO of Twitter, is likely to take over temporarily. Twitter’s stock rose on the news, rising 2.6% to $50.36, even as the broader market cratered with its biggest declines in two years.
The report might answer questions about the future of Twitter’s leadership under new ownership. Musk has vowed to restore freedom of speech to the platform and has indicated a lack of confidence in the company’s board of directors, saying none will have a paycheck from Twitter if his takeover goes through.
Agrawal was appointed CEO of Twitter in less than six months, succeeding Jack Dorsey. Reuters reported last month that Musk had lined up a new chief executive to run the company, although that person wasn’t identified. Agrawal told employees last month that Twitter’s future policies and plans are uncertain under new ownership.
The takeover raised concerns among Twitter employees, media outlets and President Joe Biden’s administration that Musk will ease censorship of speech on the social media platform. Some staffers on Twitter were unhappy about the transaction, suggesting that the buyer may be a competitor. “racist demagogue”Who will lead the company into the future? “wrong direction.”
Musk, who ranks as the world’s richest person with a fortune estimated at $246 billion, told reporters on Thursday that he’s not worried about employees leaving the company because of the takeover. “It’s a free country,” he said, adding that anyone who doesn’t feel comfortable can leave of their own accord.
Investment adviser Gary Black suggested last month that Musk could add billions of dollars in value to Twitter by paring the company’s workforce. He stated that a 10% reduction in staff would be enough to finance $10 billion of buyout financing.
According to a public filing, Musk has secured over $7 billion of equity commitments from family and friends who are interested in joining the purchase. Larry Ellison, Oracle founder and co-founder, has pledged $1B. CNBC reports that Dorsey might be part of the deal.
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