After months of legal fighting and negotiations, Elon Musk has gained ownership of Twitter, placing the billionaire in charge of one of the world’s greatest social media networks. According to a source familiar with the case who spoke on the condition of anonymity to discuss sensitive subjects, the transaction concluded on Thursday. How much did Elon Musk pay for Twitter? Musk paid around $44 billion for the social networking platform, which was the same figure he proposed earlier this spring.
What was Elon Musk’s financing plan?
Musk promised to offer $46.5 billion in stock and debt funding for the transaction, which would cover the $44 billion purchase price and closing charges. Morgan Stanley (MS.N) and Bank of America Corp (BAC.N) have agreed to provide $13 billion in debt financing.
According to experts, banks’ pledges to the arrangement were solid and tight, limiting their ability to walk away from the contract despite the possibility of significant losses.
In addition to the $7.1 billion he had raised from equity investors like Saudi Prince Alwaleed bin Talal and Oracle Corp. (ORCL.N) co-founder Larry Ellison, Musk’s $33.5 billion equity pledge included his 9.6% ownership in Twitter, which is worth $4 billion.
To pay the equity finance element of the agreement, Musk was left in need of a further $22.4 billion in funding. The bids from Apollo Global Management Inc (APO.N) and Sixth Street Partners have been withdrawn as a result of the co-backers’ declaration.
Why did Elon Musk buy Twitter?
When Musk originally attempted to purchase Twitter in a hostile takeover, he stated that he wanted the firm to do a better job of fostering free experience. “Twitter has become kind of the de facto town square, so it’s just really important that people have the, both the reality and the perception that they are able to speak freely within the bounds of the law,” he said during a TED interview in April.
He tweeted a statement to advertisers on Thursday, telling them that he wants the site to be a place “where a wide range of opinions may be discussed in a healthy manner, without using violence.”
Musk, who has 110 million Twitter followers, routinely uses the platform to announce company announcements, share jokes, and give his thoughts on a variety of political and cultural issues.
How will Twitter’s workforce change?
According to those familiar with the situation, Musk promptly fired many senior employees, including CEO Parag Agrawal, CFO Ned Segal, and Vijaya Gadde, director of legal policy, trust, and safety.
Musk has told potential partners that he planned to lay off approximately 75 percent of Twitter’s 7,500 employees. Layoffs of such magnitude might have a direct impact on the site’s users and functionality. During a visit to Twitter’s San Francisco headquarters this week, Musk informed employees that he had no plans to lay off three-quarters of the company’s employees.
Musk had already insulted several Twitter workers by disparaging the work of the site. Reports of his plans for severe cutbacks sparked outrage and resignation inside the organization.