Elon Musk expected to become Twitter’s temporary CEO after closing $44 billion takeover: Report
By Team Newsable | First Published May 6, 2022, 12:04 PM ISTTesla shares plunged 8 percent on Thursday, as investors concerned that Musk’s participation with Twitter may distract him from operating the world’s most valuable electric vehicle company.
Elon Musk is poised to become Twitter's interim CEO after completing his $44 billion purchase of the social-media company, according to a source familiar with the situation, as the billionaire moves closer to arranging funding for the deal. Musk, the world's richest man, also serves as CEO of Tesla Inc and is the founder of two other companies, The Boring Company and SpaceX.
Tesla shares plunged 8 percent on Thursday, as investors concerned that Musk’s participation with Twitter may distract him from operating the world’s most valuable electric vehicle company.
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Twitter shares, on the other hand, continued their gains and were up around 4% at $50.89, close to the transaction price of $54.20, as investors speculated that the extra money made the deal more likely to happen. Twitter CEO Parag Agrawal, who was appointed in November, is anticipated to continue in his position until the firm is sold to Musk. CNBC initially reported on Thursday that Musk intends to take over as interim CEO of Twitter.
Earlier on Thursday, Musk announced a group of high-profile investors, including Oracle co-founder Larry Ellison and Sequoia Capital, who are ready to give $7.14 billion in cash for his Twitter bid.
Also Read | Elon Musk lined up a new Twitter CEO, may appoint soon: Report
According to a regulatory filing, Saudi Arabian billionaire Prince Alwaleed bin Talal agreed to roll his $1.89 billion investment into the deal after saying last month that the purchase price was insufficient for him to sell his shares.
Musk extended his financial pledge to $27.25 billion, while Morgan Stanley reduced a margin loan to $6.25 billion. He has already obtained bank pledges for $13 billion in loans against Twitter. Binance, New York-based real estate mogul Steven Witkoff's business, and DFJ Growth IV Partners, which includes stakes in the Boring Company, SpaceX, SolarCity, and Tesla, are among the other investors.
Also Read | Twitter’s new boss Elon Musk targets Coca-Cola, says he’ll buy it ‘to put cocaine back in’
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