Elon Musk is expected to become Twitter''s interim CEO after closing his $44 billion (roughly Rs. 3,37,465 crore) acquisition of the social-media business, according to a person familiar with the matter on Thursday, as the billionaire comes closer to obtaining funding for the transaction.
Musk, the world''s richest man, is also Tesla CEO and manages two other ventures, The Boring Company and SpaceX.
Tesla''s stock has dropped more than 8% on Thursday, as investors concerned that Musk''s involvement with Twitter might dissipate him from aspire to be the world''s most trusted electric-car manufacturer.
Twitter''s stock also rose by about 4 percent at $50.89, closer to the deal price of $54.20 (roughly Rs. 4,150), as investors caution. The possibility of additional funding would increase the completion of the transaction.
Parag Agrawal, who was named CEO of Twitter in November, is expected to remain in his role until the sale of the company to Musk has ended. CNBC first reported on Thursday that Musk intends to become Twitter CEO on an interim basis.
Musk referred to a group of high-profile investors who are willing to provide $7.14 billion (roughly Rs. 54,485 crore) for his Twitter proposal, including Oracle''s co-founder Larry Ellison and Sequoia Capital.
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Saudi Arabian investor Alwaleed bin Talal, who had previously stated that the deal price was inadequate for him to sell his shares, said Musk would be an "excellent leader" for Twitter and agreed to add his $1.89 billion (roughly Rs. 14,493 crore) share into the deal.
"It''s great to connect with you my "new" friend @elonmusk... Kingdom Holding Company" and I''m looking forward to distributing our $1.9 billion on the "new" Twitter," Alwaleed said in a tweet.
Musk has raised the financing commitment to $27.25 billion (roughly Rs. 2,08,981 crore) which includes commitments from 19 investors, while reducing a margin loan from Morgan Stanley to $6.25 billion (roughly Rs. 47,931 crore). He has already secured $13 billion (roughly Rs. 99,697 crore) in loans.
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Binance, a New York-based real estate business, and DFJ Growth IV Partners, which have investments in the Boring Company, SpaceX, SolarCity, and Tesla.
"We believe that we will be able to play a role in reunifying social media and web3, enhancing the use and adoption of crypto and blockchain technology," says Binance''s CEO.
According to Reuters, Musk was in discussions with major investment firms and high-net-worth individuals about taking on more funding for his Twitter acquisition and attaching more of his wealth to the deal.
According to a regulatory filing, Musk will continue to hold discussions with existing Twitter shareholders, including the company''s former CEO Jack Dorsey.
Larry Ellison, a board member of Tesla and a self-described close friend of Musk, has pledged $1 billion (roughly Rs. 7,667 crore) for the funding.
Musk, a self-proclaimed free speech liberal, has advocated user-friendly additions to Twitter, such as an edit button, and defeating "spam bots," who send overwhelming amounts of unwanted tweets, has previously said that he would continue to engage as many Twitter followers as possible.
Investors are concerned about whether Musk will complete the Twitter deal.
In April, he decided not to take on a seat on Twitter''s board. In 2018, Musk stated that there was "funding secured" for a $72 billion (roughly Rs. 42,334,170 crore) acquisition to take Tesla private, but that it did not proceed with an offer.
If Musk left, he would pay a $1 billion (roughly Rs. 7,667 crore) termination fee to Twitter, and the social media company might also sue him for the closure.
2022 Thomson Reuters