Musk to lead Twitter temporarily after $44b takeover

FE Team | Published: May 06, 2022 21:58:08

Elon Musk

Elon Musk is expected to become Twitter's temporary CEO after closing his $44 billion takeover of the social-media firm, a person familiar with the matter said on Thursday, as the billionaire inches closer to securing funds for the deal, reports Reuters.
Musk, the world's richest man, is also the CEO at Tesla Inc and heads two other ventures, The Boring Company and SpaceX.
Tesla shares dropped 8 per cent on Thursday, as investors fretted that Musk's involvement with Twitter could distract him from running the world's most valuable electric car maker.
Twitter shares, on the other hand, extended gains and were up about 4 per cent at $50.89, closer to the deal price of $54.20, as investors bet that the new funding made the completion of the deal more likely.
Parag Agrawal, who was named Twitter's CEO in November, is expected to remain in his role until the sale of the company to Musk is completed. CNBC first reported on Thursday that Musk plans to become CEO of Twitter on an interim basis.
Earlier on Thursday, Musk listed a group of high-profile investors who are ready to provide funding of $7.14 billion for his Twitter bid, including Oracle's co-founder Larry Ellison and Sequoia Capital.
Saudi Arabian investor Prince Alwaleed bin Talal, who had said last month that the deal price was not sufficient for him to sell his shares, agreed to instead roll his $1.89 billion stake into the deal, a regulatory filing showed.
"Great to connect with you my "new" friend @elonmusk ... Kingdom Holding Company and I look forward to roll our ~$1.9 bn in the "new" Twitter," Alwaleed said in a tweet.
Musk increased his financing commitment to $27.25 billion, while reducing a margin loan from Morgan Stanley to $6.25 billion. He has already secured commitments for $13 billion in loans against Twitter from banks.
The other investors include crypto firm Binance, New York-based real estate tycoon Steven Witkoff's firm and DFJ Growth IV Partners, which has investments in the Boring Company, SpaceX, SolarCity and Tesla.
"We hope to be able to play a role in bringing social media and web3 together and broadening the use and adoption of crypto and blockchain technology," Binance CEO Changpeng Zhao said.