Elon Musk has not yet finalized the purchase of Twitter, but already has a number of plans to turn the company upside down. Thus, the short message network should gain new leadership and monetize in other ways. Musk submitted it to the banks, which backed him financially in the takeover of Twitter, reports the news agency Reuters.
As a result, Musk told Banks he would develop more ways to make money from tweets. For example, he wants to monetize tweets that go viral or contain important information. He also suggested the idea of a fee if other websites quote or embed tweets from verified accounts, Reuters reports.
Musk submitted those plans to banks as he sought lenders for the purchase of Twitter, which would cost a total of around US$44 billion (about 41 billion euros). Musk recently sold shares of Tesla worth billions, most recently for just over $8 billion. However, it is still unclear if this transaction is related to the controversial purchase of Twitter.
Musk wants to cut Twitter’s dashboard
Musk has pledged up to $21 billion of his own funds to buy Twitter. How exactly he wants to raise them, he has yet to explain. He presented a total of $46.5 billion in funding commitments for the Twitter takeover. Twitter management and board accepted Elon Musk’s offer last week. However, he still depends on a sufficient number of shareholders who donate his shares to him at a price of $54.20.
The current head of Twitter is Parag Agrawal, who took over in November 2021 following the resignation of former head and co-founder of the social network Jack Dorsey. Agrawal will run Twitter until Musk’s purchase is finalized. Musk has previously said that if his bid is successful, salaries for Twitter executives will be cut to zero. This would save Twitter $3 million a year.
Besides the board, further cuts are threatened. Bloomberg reports that Musk also spoke to banks about job cuts and cost savings. However, that should only be decided when Musk takes ownership of the company. According to Twitter, the acquisition should close later this year if shareholders surrender their shares to Musk and regulators do not object.
Pulling out would cost Musk $1 billion
Recently, there have also been doubts about the Twitter takeover, as Musk’s critical tweets could bust the deal. Musk has publicly held individual employees accountable for Twitter’s troubles, which would conflict with the takeover deal. However, a withdrawal could cost Musk dearly. Because according to the agreement filed with the US Securities and Exchange Commission, Musk should pay Twitter a termination fee of one billion dollars.