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Elon Musk sinks into Twitter HQ as $44 billion deal deadline

Elon Musk posted a video on Wednesday showing him strolling Twitter headquarters ahead of the Friday deadline to close his $44 billion company buyout deal,

Musk also changed his Twitter Profile T o Mention himself as “Chief Tweet” and his location as Twitter’s San Francisco headquarters, a building he once thought should be closed down and converted into a homeless shelter because of the company’s There were very few employees coming to the office under the remote working policy. The video shows him carrying a sink through a lobby area.

“Entering Twitter Headquarters – Let That Drown!” He tweeted.

The Delaware Chancery Court gave both parties until Friday to close the deal or face a November trial, which could have ended up with the same outcome, only for a judge to force Musk to go ahead with the original deal. did.

Despite Musk’s spectacular entrance to headquarters, it was unclear whether his purchase of Twitter was finalized. Twitter confirmed that Musk’s video tweet was genuine, but would not comment further. Musk’s lead attorney, Alex Spiro, did not immediately return a request for comment.

Robert Anderson, a law professor at Pepperdine University, said he expected the deal to be completed by Friday’s deadline, but did not make much video of Musk.

“I think he’s just visiting HQ, and I don’t see anything unusual about it other than he brought a sink,” Anderson said.

Musk was expected to take to Twitter this week and return again on Friday when the deal is finalized, according to an internal memo cited in a Bloomberg News report.

Prelude to layoffs?

The Washington Post reported last week that Musk told potential investors that he plans to cut three-quarters of Twitter’s 7,500 employees when he becomes the owner of the company. The newspaper cited documents and unnamed sources familiar with the deliberations.


Elon Musk reportedly plans to cut Twitter’s workforce

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One of Musk’s biggest hurdles to closing the deal was the funding promised nearly six months ago.

A group of banks, including Morgan Stanley and Bank of America, earlier this year signed off on a $12.5 billion loan needed for Musk to buy Twitter and take it private. Solid contracts with Musk bound banks for financing, although changes in the economy and credit markets since April have made the terms less attractive. Musk even said his investment group would buy Twitter for more than it’s worth.

Less clear is what is happening with the billions of dollars given to Musk by investors, who will get an ownership stake in Twitter. Musk’s original slate of equity partners included an array of like-minded partners about the future of Twitter, from friends from the billionaire’s tech world, such as Oracle co-founder Larry Ellison, to funds controlled by Middle Eastern royalty. .

The more equity investors kick in for the deal, the less Musk has to pay. Most of his wealth is tied up in shares of Tesla, the electric car company he runs. Since April, he’s likely sold more than $15 billion worth of Tesla stock to pay his share. More sales can come.

According to the Bloomberg Billionaires Index, Musk is the richest person in the world with a net worth of $210 billion.

“Fundamentally Better”

Musk, 51, has shared some concrete details about his plans for the social media platform. While he has ridiculed free speech and spam bots since agreeing to buy the company in April, exactly what he wants to do remains a mystery.

Although Musk’s tweets and statements have been secret, technology analysts have speculated that Musk may want to use Twitter to help recreate a version of China’s WeChat service that lets users video chat, message, stream Allows to scan video, bar codes and make payments. ,

He gave a little more detail during Tesla’s annual shareholder meeting in August, telling a crowd at a factory near Austin, Texas that he frequently uses Twitter and knows the product well. “I think I have a good sense of where to point the engineering team with Twitter to radically improve it,” he said.

Musk flirting with buying Twitter Appeared to start at the end of March, That’s when Twitter said it contacted members of its board — including co-founder Jack Dorsey — and told them it was buying shares and looking to either join the board, take Twitter private or start a competitor. are interested in.

Then, on April 4, he disclosed in a regulatory filing that he had become the company’s largest shareholder after acquiring a 9% stake for about $3 billion.

First, Twitter offered Musk a seat on its board. But six days later, CEO Parag Agarwal tweeted That Musk would not join the board after all. His bid to buy the company quickly followed.

Inside Twitter, Musk’s proposal was met with confusion and falling morale, especially after Musk publicly criticized one of Twitter’s top lawyers involved in content-restraint decisions.

In July, Musk suddenly reversed course by announcing that he was dropping his bid to buy Twitter. Their stated reason: Twitter was not straightforward about its problem with fake accounts which they called “spam bots”. Twitter sued Musk in Delaware Chancery Court to enforce the deal. Two weeks before the 5-day trial began, Musk again changed his mind, saying he wanted to complete the deal.

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