Elon Musk buys Twitter for $44 billion and is already laying off employees

Elon Musk plans to take over the role of CEO of Twitter Inc. after completing the social network’s acquisition Thursday evening. The billionaire thus becomes the head of the social media giant, as well as managing Tesla, SpaceX and other companies. The takeover would be at an original offer price of $54.20 per share and a total cost of approximately $44 billion.

Twitter’s stock price was $53.70 at market close. Meanwhile, his favorite cryptocurrency Dogecoin (DOGE), which Musk suggested could be used for some payments, was spotted on Twitter. price explodes right after official announcement. As a matter of fact, it has recorded a 35% increase in its value since last Monday.

Twitter takeover almost canceled

After months of negotiations, Musk tried to withdraw from the Twitter deal Shortly after, board members accepted his offer in April and said he canceled the contract in July because he was misled by the company about the number of fake accounts. These allegations were vehemently denied by the company, but various experts have concluded that there are far more fake accounts than Twitter reported.

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Twitter, on the other hand, tried to prove that Musk was making excuses to walk away just because he changed his mind. The company sued Elon Musk for this reason to force him to abide by the agreement. With the trial approaching, the unpredictable billionaire finally capitulated and restarted the takeover project, which was supposed to conclude today, October 28, 2022.

Some Twitter employees have already been fired

Now in office, Musk is expected to quickly reorganize and downsize the company, and it looks like the first layoffs have already taken place. Indeed, several media reported it. Some company executives were fired soon after Musk came to Twitter. As a reminder, the billionaire returned to the company’s headquarters yesterday with a sink.

Right after completing the takeover deal, Elon Musk is said to have sacked at least four executives among them. CEO Parag Agrawal, CFO Ned Segal, and the company’s chief legal officer Sean Edgett.

Elon Musk was fired too Vijae Gadde, Head of Legal Department, Twitter Policy & Trust was responsible for enforcing and creating the platform’s rules. It was he who made the decision to permanently ban Donald Trump’s account last year.

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Compensation to dismissed workers

According to the regulatory documents surrounding the acquisition, dismissed senior executives will receive a certain amount of severance pay and their actions will be automatically expedited. CEO Agrawal is expected to receive the largest payout at $38.7 million.largely due to the dismissal of all of its shares.

Ned Segal, Twitter’s chief financial officer, will receive $25.4 million for his dismissal. Legal director Vijaya Gadde will leave with $12.5 million. Finally, chief client officer Sarah Personette will receive $11.2 million.

The billionaire said he wanted it a few days ago. Remove 75% of Twitter staff, but then quickly retracted his statement. The firing of four top executives is not reassuring for the rest of Twitter’s employees. The billionaire nevertheless shared a photo of himself on Twitter in which he sympathizes with the employees.

Anyway, Musk tweeted on Thursday that he bought Twitter” because it is important for the future of civilization to have a common digital public space where a wide range of beliefs can be discussed healthily. “. we dream of it The social network will change drastically in the coming monthsand of course we will keep you informed of all upcoming news.

Moyens Staff
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